Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ONCOR ELECTRIC DELIVERY CO LLC |
Entity Central Index Key | 1,193,311 |
Document Type | S4 |
Document Period End Date | Sep. 30, 2018 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Condensed Statements Of Consoli
Condensed Statements Of Consolidated Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating revenues (Note 4) | $ 1,095 | $ 3,106 | $ 3,958 | $ 3,920 | $ 3,878 | |||
Operating expenses: | ||||||||
Wholesale transmission service | 237 | 719 | 929 | 894 | 802 | |||
Operation and maintenance (Note 11) | 214 | 636 | 762 | 754 | 724 | |||
Depreciation and amortization | 169 | 503 | 762 | 785 | 863 | |||
Provision in lieu of income taxes (Note 11) | 54 | 134 | 255 | 259 | 260 | |||
Taxes other than amounts related to income taxes | 128 | 374 | 462 | 451 | 450 | |||
Total operating expenses | 802 | 2,366 | 3,170 | 3,143 | 3,099 | |||
Operating income | 293 | $ 247 | 740 | 788 | 777 | 779 | ||
Other income and (deductions) - net (Note 12) | (13) | (13) | (63) | $ (35) | (15) | (15) | (22) | |
Nonoperating benefit in lieu of income taxes | (3) | (13) | 12 | (5) | (8) | |||
Interest expense and related charges (Note 12) | 89 | 87 | 264 | 257 | 342 | 336 | 333 | |
Net income | $ 194 | 157 | $ 426 | 343 | 419 | 431 | 432 | |
Nonaffiliates [Member] | ||||||||
Operating revenues (Note 4) | $ 3,958 | 3,205 | 2,923 | |||||
Affiliates [Member] | ||||||||
Operating revenues (Note 4) | $ 715 | $ 955 | ||||||
Accounting Standards Update 2017-07 [Member] | ||||||||
Operating revenues (Note 4) | [1] | 1,068 | 2,967 | |||||
Operating expenses: | ||||||||
Wholesale transmission service | [1] | 230 | 690 | |||||
Operation and maintenance (Note 11) | [1] | 176 | 529 | |||||
Depreciation and amortization | [1] | 193 | 581 | |||||
Provision in lieu of income taxes (Note 11) | [1] | 97 | 209 | |||||
Taxes other than amounts related to income taxes | [1] | 120 | 340 | |||||
Total operating expenses | [1] | 816 | 2,349 | |||||
Operating income | [1] | 252 | 618 | |||||
Other income and (deductions) - net (Note 12) | [1] | (13) | (35) | |||||
Nonoperating benefit in lieu of income taxes | [1] | (5) | (17) | |||||
Interest expense and related charges (Note 12) | [1] | 87 | 257 | |||||
Net income | [1] | $ 157 | $ 343 | |||||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, as discussed in Note 1. |
Condensed Statements Of Conso_2
Condensed Statements Of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statements Of Consolidated Comprehensive Income [Abstract] | |||||||
Net income | $ 194 | $ 157 | $ 426 | $ 343 | $ 419 | $ 431 | $ 432 |
Other comprehensive income (loss): | |||||||
Cash flow hedges - derivative value net loss recognized in net income (net of tax) | 2 | 1 | 2 | 2 | 2 | ||
Defined benefit pension plans (net of tax) | 1 | 1 | 2 | 2 | 8 | (8) | |
Total other comprehensive income | 1 | 1 | 4 | 3 | 10 | 2 | (6) |
Comprehensive income | $ 195 | $ 158 | $ 430 | $ 346 | $ 429 | $ 433 | $ 426 |
Condensed Statements Of Conso_3
Condensed Statements Of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statements Of Consolidated Comprehensive Income [Abstract] | |||
Cash flow hedges - derivative value net loss recognized in net income, tax expense | $ 1 | $ 1 | $ 1 |
Defined benefit pension plans- net tax benefit | $ 4 | $ 4 |
Condensed Statements Of Conso_4
Condensed Statements Of Consolidated Cash Flows - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows - operating activities: | |||||
Net income | $ 426 | $ 343 | $ 419 | $ 431 | $ 432 |
Adjustments to reconcile net income to cash provided by operating activities: | |||||
Depreciation and amortization | 589 | 618 | 815 | 833 | 908 |
Provision in lieu of deferred income taxes | 37 | 250 | 309 | 181 | 40 |
Other - net | (1) | (2) | (2) | (4) | (4) |
Changes in operating assets and liabilities: | |||||
Accounts receivable - trade (including affiliates) | (76) | (34) | 12 | ||
Inventories | (1) | (7) | (8) | ||
Accounts payable - trade (including affiliates) | (11) | 14 | (21) | ||
Regulatory accounts related to reconcilable tariffs (Note 5) | 130 | 30 | 29 | (55) | 11 |
Other - assets | 54 | 37 | 22 | ||
Other - liabilities | (77) | 33 | (31) | ||
Other operating assets and liabilities | (100) | (189) | |||
Cash provided by operating activities | 1,081 | 1,050 | 1,459 | 1,429 | 1,361 |
Cash flows - financing activities: | |||||
Issuances of long-term debt (Note 7) | 800 | 600 | 600 | 175 | 725 |
Repayment of long-term debt (Note 7) | (825) | (324) | (324) | (41) | (639) |
Change in short-term borrowings (Note 6) | 149 | 128 | 161 | (51) | 129 |
Capital contributions from members (Note 9) | 144 | ||||
Distributions to members (Note 9) | (30) | (237) | (237) | (230) | (436) |
Debt discount, premium, financing and reacquisition costs - net | (9) | (4) | (10) | 10 | (12) |
Cash provided by financing activities | 229 | 163 | 190 | (137) | (233) |
Cash flows - investing activities: | |||||
Capital expenditures (Note 11) | (1,345) | (1,234) | (1,631) | (1,352) | (1,154) |
Business acquisition (Note 14) | (25) | ||||
Other - net | 15 | 10 | 12 | 51 | 47 |
Cash used in investing activities | (1,330) | (1,224) | (1,644) | (1,301) | (1,107) |
Net change in cash and cash equivalents | (20) | (11) | 5 | (9) | 21 |
Cash and cash equivalents - beginning balance | 21 | 16 | 16 | 25 | 4 |
Cash and cash equivalents - ending balance | $ 1 | $ 5 | $ 21 | $ 16 | $ 25 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 1 | $ 21 | $ 16 |
Trade accounts receivable - net (Note 12) | 688 | 635 | 545 |
Amounts receivable from members related to income taxes (Note 11) | 26 | 80 | |
Materials and supplies inventories - at average cost | 115 | 91 | 89 |
Prepayments and other current assets | 95 | 88 | 100 |
Total current assets | 899 | 861 | 830 |
Investments and other property (Note 12) | 121 | 113 | 100 |
Property, plant and equipment - net (Note 12) | 15,782 | 14,879 | 13,829 |
Goodwill (Note 12) | 4,064 | 4,064 | 4,064 |
Regulatory assets (Note 5) | 1,850 | 2,180 | 1,974 |
Other noncurrent assets | 20 | 23 | 14 |
Total assets | 22,736 | 22,120 | 20,811 |
Current liabilities: | |||
Short-term borrowings (Note 6) | 1,099 | 950 | 789 |
Long-term debt due currently (Note 7) | 250 | 550 | 324 |
Trade accounts payable | 253 | 242 | 231 |
Amounts payable to members related to income taxes (Note 11) | 32 | 21 | 20 |
Accrued taxes other than amounts related to income | 168 | 190 | 182 |
Accrued interest | 92 | 83 | 83 |
Other current liabilities | 190 | 188 | 144 |
Total current liabilities | 2,084 | 2,224 | 1,773 |
Long-term debt, less amounts due currently (Note 7) | 5,836 | 5,567 | 5,515 |
Liability in lieu of deferred income taxes (Note 11) | 1,560 | 1,517 | 2,788 |
Regulatory liabilities (Note 5) | 2,763 | 2,807 | 856 |
Employee benefit obligations and other (Notes 10 and 12) | 2,046 | 2,102 | 2,168 |
Total liabilities | 14,289 | 14,217 | 13,100 |
Commitments and contingencies (Note 8) | |||
Membership interests (Note 9): | |||
Capital account - number of interests outstanding 2018 and 2017 - 635,000,000 | 8,544 | 8,004 | 7,822 |
Accumulated other comprehensive loss | (97) | (101) | (111) |
Total membership interests | 8,447 | 7,903 | 7,711 |
Total liabilities and membership interests | $ 22,736 | $ 22,120 | $ 20,811 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidated Balance Sheets [Abstract] | ||||
Capital account, interests outstanding | 635,000,000 | 635,000,000 | 635,000,000 | 635,000,000 |
Statements Of Consolidated Memb
Statements Of Consolidated Membership Interests - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital account: | |||||||||
Balance at beginning of period | $ 7,822 | $ 7,621 | $ 8,004 | $ 7,822 | $ 7,822 | $ 7,621 | $ 7,625 | ||
Net income | $ 77 | 73 | $ 77 | 81 | 426 | 343 | 419 | 431 | 432 |
Distributions to members | (237) | (230) | (436) | ||||||
Balance at end of period (number of interests outstanding: 2017, 2016 and 2015 - 635 million) | 8,004 | 7,822 | 8,004 | 7,822 | 7,621 | ||||
Accumulated other comprehensive income (loss) net of tax effects: | |||||||||
Balance at beginning of period | $ (111) | $ (113) | (101) | (111) | (111) | (113) | (107) | ||
Net effects of cash flow hedges (net of tax expense of $1, $1 and $1) | 2 | 2 | 2 | ||||||
Defined benefit pension plans (net of tax) | 2 | $ 2 | 8 | (8) | |||||
Balance at end of period | (101) | (111) | $ (97) | (101) | (111) | (113) | |||
Total membership interests at end of period | $ 7,903 | $ 7,711 | $ 7,903 | $ 7,711 | $ 7,508 |
Statements Of Consolidated Me_2
Statements Of Consolidated Membership Interests (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements Of Consolidated Membership Interest [Abstract] | |||
Interests outstanding | 635,000,000 | 635,000,000 | 635,000,000 |
Net effects of cash flow hedges, tax expense | $ 1 | $ 1 | $ 1 |
Defined benefit pension plans- net tax benefit | $ 4 | $ 4 |
Business and Significant Accoun
Business and Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Business and Significant Accounting Policies [Abstract] | ||
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business References in this report to “we,” “our,” “us” and “the company” are to Oncor. See “Glossary” for definition of terms and abbreviations. We are a regulated electricity transmission and distribution company principally engaged in providing delivery services to REPs that sell power in the north-central, eastern and western parts of Texas. We are a direct, majority-owned subsidiary of Oncor Holdings, which is a direct, wholly-owned subsidiary of STIH, a direct wholly-owned subsidiary of STH. In connection with the Sempra Acquisition, on March 9, 2018, STH became an indirect wholly- owned subsidiary of Sempra. Oncor Holdings owns 80.25% of our membership interests and Texas Transmission owns 19.75% of our membership interests. We are managed as an integrated business; consequently, there are no separate reportable business segments. Various “ring-fencing” measures that had been taken to enhance our credit quality and the separateness between the Oncor Ring-Fenced Entities and its majority owner (formerly the Texas Holdings Group and now Sempra) continue to remain in effect after the Sempra Acquisition. These measures serve to mitigate our and Oncor Holdings’ credit exposure to Sempra and to reduce the risk that our assets and liabilities or those of Oncor Holdings would be substantively consolidated with the assets and liabilities of Sempra in connection with a bankruptcy of one or more Sempra entities. Such measures include, among other things: the 19.75% equity interest held by Texas Transmission; maintenance of separate books and records for the Oncor Ring-Fenced Entities; our board of directors being comprised of a majority of independent directors; and prohibitions on the Oncor Ring-Fenced Entities providing credit support to or receiving credit support from Sempra entities. The assets and liabilities of the Oncor Ring-Fenced Entities are separate and distinct from those of Sempra. None of the assets of the Oncor Ring-Fenced Entities are available to satisfy the debt or contractual obligations of Sempra entities. We do not bear any liability for debt or contractual obligations of Sempra, and vice versa. Accordingly, our operations are conducted, and our cash flows are managed, independently from Sempra. For more information on ring-fencing measures, see Note 2. EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor In April 2014, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities were not parties to the EFH Bankruptcy Proceedings. In connection with the plans of reorganization in the EFH Bankruptcy Proceedings, on March 9, 2018, Sempra acquired the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH (Sempra Acquisition). See Note 2 for further information. Basis of Presentation These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes included in the 2017 Form 10-K. In the opinion of Oncor management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the results of operations and financial position have been made. All intercompany items and transactions have been eliminated in consolidation. The results of operations for an interim period may not give a true indication of results for a full year due to seasonality. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated. Use of Estimates Preparation of our financial statements requires management to make estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. No material adjustments were made to previous estimates or assumptions during the current period. Goodwill We evaluate goodwill for impairment annually and whenever events or changes in circumstances indicate that an impairment may exist. Beginning in 2018, we elected to change our annual goodwill assessment date from December 1 to October 1 to correspond with the assessment date of our new majority owner. We do not believe this change in the assessment date is a material change. Changes in Accounting Standards Since May 2014, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , along with other supplemental guidance (together, Topic 606). Topic 606 introduced new, increased requirements for disclosure of revenue in financial statements and guidance intended to eliminate inconsistencies in the recognition of revenue. We adopted Topic 606 effective January 1, 2018 using the modified retrospective approach and elected the practical expedient available that allows an entity to recognize revenue in the amount to which the entity has the right to invoice related to performance completed to date. Our revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. The new guidance did not change this pattern of recognition and therefore the adoption did not have a material effect on our reported results of operations, financial position or cash flows. Topic 606 also requires the separate presentation of “alternative revenue program” revenues on the income statement. We anticipate less than $20 million annually in alternative revenue program revenues related to our energy efficiency program and will disclose such activity in the notes to financial statements. See Note 4 for additional disclosures about revenues from contracts with customers. In February 2016, the FASB issued ASU 2016-02 which created FASB Topic 842, Leases (Topic 842). Topic 842 amends previous GAAP to require the balance sheet recognition of substantially all lease assets and liabilities, including operating leases. Operating lease liabilities are not classified as debt for GAAP purposes under Topic 842 and are not treated as debt for regulatory purposes. Under current standards, all of Oncor’s existing leases meet the definition of an operating lease. Under the new rules, the recognition of any finance leases (currently known as capital leases) on the balance sheet would be classified as debt for GAAP purposes and are expected to be defined as debt for our regulatory capital structure purposes (see Note 9 for details) similar to the current capital lease treatment. We plan to adopt Topic 842 on January 1, 2019 and we expect to use certain practical expedients and policy elections available under the guidance including a practical expedient to not assess whether existing land easements that were not previously accounted for as leases are or contain a lease under Topic 842, an adoption method to not restate comparative periods and a policy election to forego the application of Topic 842 recognition requirements to short-term leases. The initial adoption of Topic 842 will affect our balance sheet, as our contracts for office space and fleet vehicles are currently classified as operating leases. Subsequent to adoption, to the extent Oncor enters into finance leases, its credit facility covenants and capitalization ratios could be impacted. We continue to evaluate our contracts for proper treatment under the new standards and the estimated impact on our financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , an amendment to Topic 715, Compensation – Retirement Benefits . ASU 2017-07 requires the non-service cost components of net retirement benefit plan costs be presented as non-operating in the income statement. In addition, only the service cost component of net retirement benefit plan cost is eligible for capitalization as part of inventory or property, plant and equipment. We adopted ASU 2017-07 on January 1, 2018. The presentation of costs is required to be applied on a retrospective basis while the capitalization eligibility requirement is applied on a prospective basis. The guidance allows a practical expedient that permits use of previously disclosed service costs and non-service costs of the Pension and OPEB Plans in the comparative periods as appropriate estimates when recasting the presentation of these costs in the income statements. We have elected this practical expedient. For cash flow purposes on a prospective basis, non-service costs will be reflected as a reduction to operating cash flows, offset by lower cash used in investing activities (lower capital expenditures). The new guidance did not have a material effect on our results of operations, financial position or net change in total cash flows and we do not expect the guidance to have a material effect on our rate-making process. For the three- and nine-month periods ended September 30, 2017, the adoption of ASU 2017-07 resulted in a reclassification of $8 million and $23 million from operation and maintenance expense to other income and (deductions), respectively, and a corresponding reclassification of $3 million and $9 million, respectively, from provision in lieu of income taxes to nonoperating provision in lieu of income taxes. For the years 2015, 2016 and 2017, the reclassification amounts are $28 million, $28 million and $31 million from operation and maintenance expense to other income and (deductions), respectively, and a corresponding reclassification of $10 million, $10 million and $11 million, respectively, from provision in lieu of income taxes to nonoperating provision in lieu of income taxes. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). ASU 2018-02 allows a reclassification from accumulated other comprehensive income (AOCI) to capital accounts for stranded tax effects resulting from the TCJA which we expect to elect. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. Our stranded tax effects in AOCI are approximately $4 million and will increase our capital account upon reclassification. ASU 2018-02 can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. ASU 2018-02 is effective for our 2019 annual reporting period, including interim periods therein, with early adoption permitted. We plan to adopt the standard on a prospective basis, January 1, 2019. | 1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business References in this report to “we,” “our,” “us” and “the company” are to Oncor and/or its subsidiary as apparent in the context. See “Glossary” for definition of terms and abbreviations. We are a regulated electricity transmission and distribution company principally engaged in providing delivery services to REPs that sell power in the north-central, eastern and western parts of Texas. Revenues from subsidiaries of Vistra (formerly subsidiaries of TCEH) represented 22% , 23% and 25% of our total operating revenues for the years ended December 31, 2017, 2016 and 2015, respectively. We are a direct, majority-owned subsidiary of Oncor Holdings, which is a direct, wholly-owned subsidiary of EFIH, a direct, wholly-owned subsidiary of EFH Corp. EFH Corp. is a subsidiary of Texas Holdings, which is controlled by the Sponsor Group. Oncor Holdings owns 80.03% of our membership interests, Texas Transmission owns 19.75% of our membership interests and certain members of our management team and board of directors indirectly own the remaining membership interests through Investment LLC. We are managed as an integrated business; consequently, there are no separate reportable business segments. Our consolidated financial statements include our former wholly-owned, bankruptcy-remote financing subsidiary, Bondco, a VIE through December 29, 2016, at which time it was dissolved (see Note 13) . This financing subsidiary was organized for the limited purpose of issuing certain transition bonds to recover generation-related regulatory asset stranded costs and other qualified costs under an order issued by the PUCT in 2002. Bondco issued an aggregate $1.3 billion principal amount of transition bonds during 2003 and 2004. The 2003 Series transition bonds matured and were paid in full in 2015 and the 2004 Series transition bonds matured and were paid in full in May 2016. Final true-up proceedings and refunds of over-collected transition charges for the transition bonds were conducted by Oncor and the PUCT during 2016 and had no material net income impact. Various “ring-fencing” measures have been taken to enhance the separateness between the Oncor Ring-Fenced Entities and the Texas Holdings Group and our credit quality. These measures serve to mitigate our and Oncor Holdings’ credit exposure to the Texas Holdings Group and to reduce the risk that our assets and liabilities or those of Oncor Holdings would be substantively consolidated with the assets and liabilities of the Texas Holdings Group in connection with a bankruptcy of one or more of those entities, including the EFH Bankruptcy Proceedings discussed below. Such measures include, among other things: our sale of a 19.75% equity interest to Texas Transmission in November 2008; maintenance of separate books and records for the Oncor Ring-Fenced Entities; our board of directors being comprised of a majority of independent directors; and prohibitions on the Oncor Ring-Fenced Entities providing credit support to, or receiving credit support from, any member of the Texas Holdings Group. The assets and liabilities of the Oncor Ring-Fenced Entities are separate and distinct from those of the Texas Holdings Group. None of the assets of the Oncor Ring-Fenced Entities are available to satisfy the debt or contractual obligations of any member of the Texas Holdings Group. We do not bear any liability for debt or contractual obligations of the Texas Holdings Group, and vice versa. Accordingly, our operations are conducted, and our cash flows are managed, independently from the Texas Holdings Group. In the PUCT proceedings requesting approval of the Sempra Acquisition (PUCT Docket No. 47675), Sempra has committed to certain ring-fencing measures that will be in effect upon closing of the Sempra Acquisition. For more information on the Sempra Acquisition and the related PUCT proceedings, see Note 2. EFH Bankruptcy Proceedings On the EFH Petition Date, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities are not parties to the EFH Bankruptcy Proceedings. We believe the “ring-fencing” measures discussed above mitigate our potential exposure to the EFH Bankruptcy Proceedings. See Note 2 for a discussion of the potential impacts of the EFH Bankruptcy Proceedings on our financial statements. Basis of Presentation Our consolidated financial statements have been prepared in accordance with GAAP. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated. Use of Estimates Preparation of our financial statements requires management to make estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. No material adjustments were made to previous estimates or assumptions during the current year. Revenue Recognition General Oncor’s revenue is billed under tariffs approved by the PUCT and the majority of revenues are related to providing electric delivery service to consumers. Tariff rates are designed to recover the cost of providing electric delivery service including a reasonable rate of return on invested capital. Revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. Reconcilable Tariffs The PUCT has designated certain tariffs (TCRF, EECRF surcharges, AMS surcharges and charges related to transition bonds) as reconcilable, which means the differences between amounts billed under these tariffs and the related incurred costs are deferred as either regulatory assets or regulatory liabilities. Accordingly, at prescribed intervals, future tariffs are adjusted to either repay regulatory liabilities or collect regulatory assets. See “Regulatory Assets and Liabilities” below. Impairment of Long-Lived Assets and Goodwill We evaluate long-lived assets (including intangible assets with finite lives) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We also evaluate goodwill for impairment annually (at December 1) and whenever events or changes in circumstances indicate that an impairment may exist. The determination of the existence of these and other indications of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows. If at the assessment date our carrying value exceeds our estimated fair value (enterprise value), then the estimated enterprise value is compared to the estimated fair values of our operating assets (including identifiable intangible assets) and liabilities at the assessment date. The resultant implied goodwill amount is compared to the recorded goodwill amount. Any excess of the recorded goodwill amount over the implied goodwill amount is written off as an impairment charge. The goodwill impairment tests performed in 2017, 2016 and 2015 were based on a qualitative assessment in which we considered macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relative factors. Based on tests results, no impairments were recognized in 2017, 2016 or 2015 . Provision in Lieu of Income Taxes Effective with the November 2008 sale of equity interests to Texas Transmission and Investment LLC, we became a partnership for U.S. federal income tax purposes, and subsequently we are not a member of EFH Corp.’s consolidated tax group and only EFH Corp.’s share of our partnership income is included in its consolidated federal income tax return. Our tax sharing agreement with Oncor Holdings and EFH Corp. was amended in November 2008 to include Texas Transmission and Investment LLC. The tax sharing agreement provides for the calculation of tax liability substantially as if we and Oncor Holdings were taxed as corporations, and requires tax payments to members determined on that basis (without duplication for any income taxes paid by a subsidiary of Oncor Holdings). While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and the presentation of our financial statements as an entity subject to cost-based regulatory rate-setting processes, with such costs including income taxes, the financial statements present amounts determined under the tax sharing agreement as “provision in lieu of income taxes” and “liability in lieu of deferred income taxes” for periods subsequent to the sales of equity interests discussed in Note 4. Such amounts are determined in accordance with the provisions of accounting guidance for income taxes and for uncertainty in income taxes and thus differences between the book and tax bases of assets and liabilities are accounted for as if we were taxed as a corporation. The accounting guidance for rate-regulated enterprises requires the recognition of regulatory assets or liabilities if it is probable such deferred tax-related amounts will be recovered from, or returned to customers in future rates. Investment tax credits are amortized to income over the estimated lives of the related properties. We classify interest and penalties expense related to uncertain tax positions as current provision in lieu of income taxes as discussed in Note 4. Defined Benefit Pension Plans and OPEB Plans We have liabilities under pension plans that offer benefits based on either a traditional defined benefit formula or a cash balance formula and an OPEB plan that offers certain health care and life insurance benefits to eligible employees and their eligible dependents upon the retirement of such employees from the company. Costs of pension and OPEB plans are dependent upon numerous factors, assumptions and estimates. See Note 10 for additional information regarding pension and OPEB plans. Contingencies We evaluate and account for contingencies using the best information available. A loss contingency is accrued and disclosed when it is probable that an asset has been impaired or a liability incurred and the amount of the loss can be reasonably estimated. If a range of probable loss is established, the minimum amount in the range is accrued, unless some other amount within the range appears to be a better estimate. If the probable loss cannot be reasonably estimated, no accrual is recorded, but the loss contingency is disclosed to the effect that the probable loss cannot be reasonably estimated. A loss contingency will be disclosed when it is reasonably possible that an asset has been impaired or a liability incurred. If the likelihood that an impairment or incurrence is remote, the contingency is neither accrued nor disclosed. Gain contingencies are recognized upon realization. System of Accounts Our accounting records have been maintained in accordance with the FERC Uniform System of Accounts as adopted by the PUCT. Property, Plant and Equipment Properties are stated at original cost. The cost of self-constructed property additions includes materials and both direct and indirect labor and applicable overhead and an allowance for funds used during construction. D epreciation of property, plant and equipment is calculated on a straight-line basis over the estimated service lives of the properties based on depreciation rates approved by the PUCT. As is common in the industry, depreciation expense is recorded using composite depreciation rates that reflect blended estimates of the lives of major asset groups as compared to depreciation expense calculated on a component asset-by-asset basis. Depreciation rates include plant removal costs as a component of depreciation expense, consistent with regulatory treatment. Actual removal costs incurred are charged to accumulated depreciation. When accrued removal costs exceed incurred removal costs, the difference is reclassified as a regulatory liability to retire assets in the future. Regulatory Assets and Liabilities We are subject to rate regulation and our financial statements reflect regulatory assets and liabilities in accordance with accounting standards related to the effect of certain types of regulation. Regulatory assets and liabilities represent probable future revenues that will be recovered from or refunded to customers through the ratemaking process based on PURA and/or the PUCT’s orders, precedents or substantive rules. Rate regulation is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital subject to PUCT review for reasonableness and prudence and possible disallowance. Regulatory decisions can have an impact on the recovery of costs, the rate earned on invested capital and the timing and amount of assets to be recovered by rates. See Note 5 for more information regarding regulatory assets and liabilities. Franchise Taxes Franchise taxes are assessed to us by local governmental bodies, based on kWh delivered and are a principal component of taxes other than amounts related to income taxes as reported in the income statement. Franchise taxes are not a “pass through” item. The rates we charge customers are intended to recover the franchise taxes, but we are not acting as an agent to collect the taxes from customers. Allowance for Funds Used During Construction (AFUDC) AFUDC is a regulatory cost accounting procedure whereby both interest charges on borrowed funds and a return on equity capital used to finance construction are included in the recorded cost of utility plant and equipment being constructed. AFUDC is capitalized on all projects involving construction periods lasting greater than thirty days. The equity portion, if any, of capitalized AFUDC is accounted for as other income. See Note 13 for detail of amounts charged to interest expense. Cash and Cash Equivalents For purposes of reporting cash and cash equivalents, temporary cash investments purchased with a remaining maturity of three months or less are considered to be cash equivalents. Fair Value of Nonderivative Financial Instruments The carrying amounts for financial assets classified as current assets and the carrying amounts for financial liabilities classified as current liabilities approximate fair value due to the short maturity of such instruments. The fair values of other financial instruments, for which carrying amounts and fair values have not been presented, are not materially different than their related carrying amounts. The following discussion of fair value accounting standards applies primarily to our determination of the fair value of assets in the pension and OPEB plans trusts (see Note 10) and long-term debt (see Note 7). Accounting standards related to the determination of fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a “mid-market” valuation convention (the mid-point price between bid and ask prices) as a practical expedient to measure fair value for the majority of our assets and liabilities subject to fair value measurement on a recurring basis. We primarily use the market approach for recurring fair value measurements and use valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. We categorize our assets and liabilities recorded at fair value based upon the following fair value hierarchy: · Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. · Level 2 valuations use inputs that, in the absence of actively quoted market prices, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets , (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Our Level 2 valuations utilize over-the-counter broker quotes, quoted prices for similar assets or liabilities that are corroborated by correlations or other mathematical means and other valuation inputs. · Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. We use the most meaningful information available from the market combined with internally developed valuation methodologies to develop our best estimate of fair value. We utilize several different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or comparable assets and liabilities for those items that are measured on a recurring basis. The fair value of certain investments is measured using the net asset value (NAV) per share as a practical expedient. Such investments measured at NAV are not required to be categorized within the fair value hierarchy. See “Changes in Accounting Standards” below. Consolidation of Variable Interest Entities A VIE is an entity with which we have a relationship or arrangement that indicates some level of control over the entity or results in economic risks to us. We consolidate a VIE if we have: a) the power to direct the significant activities of the VIE and b) the right or obligation to absorb profit and loss from the VIE (primary beneficiary). See Note 13. Derivative Instruments and Mark-to-Market Accounting We have from time-to-time entered into derivative instruments to hedge interest rate risk. If the instrument meets the definition of a derivative under accounting standards related to derivative instruments and hedging activities, the fair value of each derivative is recognized on the balance sheet as a derivative asset or liability and changes in the fair value are recognized in net income, unless criteria for certain exceptions are met. This recognition is referred to as “mark-to-market” accounting. Changes in Accounting Standards Since May 2014, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers along with other supplemental guidance (together, Topic 606). Topic 606 introduces new, increased requirements for disclosure of revenue in financial statements and guidance that are intended to eliminate inconsistencies in the recognition of revenue. We will add a revenue-related note to the financial statements to satisfy the new disclosure requirements of Topic 606. Topic 606 also requires the separate presentation of “alternative revenue program” revenues on the income statement. We anticipate less than $20 million annually in alternative revenue program revenues related to our energy efficiency program and will disclose such activity in the notes to financial statements. We are required to adopt Topic 606 effective January 1, 2018. We will adopt using the modified retrospective approach and will elect certain practical expedients available under the guidance. Our revenues from customers are tariff-based and are designed to recover the cost of providing electric delivery service to customers including a reasonable rate of return on invested capital. Revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. The new guidance does not change this pattern of recognition and therefore the adoption will not have an effect on our reported results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02 which created FASB Topic 842, Leases (Topic 842) . Topic 842 amends previous GAAP to require the balance sheet recognition of lease assets and liabilities for operating leases. Operating lease liabilities will not be classified as debt for GAAP purposes under Topic 842 and will not be treated as debt for regulatory purposes. At this time, all of Oncor’s existing leases meet the definition of an operating lease liability. Under the new rules, the recognition of any finance leases (currently known as capital leases) on the balance sheet would be classified as debt for GAAP purposes and are expected to be defined as debt for our regulatory capital structure purposes (see Note 9 for details) similar to the current capital lease treatment. We will be required to adopt Topic 842 by January 1, 2019. We expect to adopt at that time using certain practical expedients available under the transition guidance including a practical expedient to not assess whether existing land easements that were not previously accounted for as leases are or contain a lease under Topic 842. The initial adoption of Topic 842 will affect our balance sheet, as leased buildings and vehicles are recognized as operating lease liabilities. Subsequent to adoption, to the extent Oncor enters into finance leases, its credit facility covenants and capitalization ratios could be impacted. We continue to compile a population of contracts for assessment and evaluate the potential impact of Topic 842 on our financial statements. In March 2017, the FASB issued ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , an amendment to Topic 715, Compensation – Retirement Benefits (Topic 715). Topic 715, as amended, will require the non-service cost components of net retirement benefit plan costs be presented as non-operating in the income statement. In addition, only the service cost component of net retirement benefit plan cost will be eligible for capitalization as part of inventory or property, plant and equipment. We are required to adopt the amendment effective January 1, 2018. The income statement presentation requirement must be applied on a retrospective basis while the capitalization eligibility requirement is applied on a prospective basis. The guidance allows a practical expedient that permits use of previously disclosed service costs and non-service costs from the Pension and OPEB Plans note in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the income statements. We will elect this practical expedient. For cash flow purposes on a prospective basis, non-service costs will be reflected as a reduction to operating cash flows, offset by lo wer cash used in investing activities (lower capital expenditures). We do not expect the new guidance to have a material effect on our rate-making process, our results of operations, financial position or net change in total cash flows but continue to evaluate for potential impacts. |
EFH Bankruptcy Proceedings and
EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor [Abstract] | ||
EFH BANKRUPTCY PROCEEDINGS AND CHANGE IN INDIRECT OWNERSHIP OF ONCOR | 2. EFH BANKRUPTCY PROCEEDINGS AND CHANGE IN INDIRECT OWNERSHIP OF ONCOR In April 2014, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities were not parties to the EFH Bankruptcy Proceedings. In 2016, pursuant to a plan of reorganization confirmed by the bankruptcy court, the TCEH Debtors exited bankruptcy pursuant to the Vistra Spin-Off. As a result of the Vistra Spin-Off, Vistra and its subsidiaries, including Luminant and TXU Energy, ceased to be related parties of ours as of October 3, 2016. See Note 11 for details of Oncor’s related-party transactions with members of the Texas Holdings Group. In connection with the plans of reorganization in the EFH Bankruptcy Proceedings, on March 9, 2018, Sempra acquired the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH (Sempra Acquisition), as discussed in further detail below. Prior to consummation of the Sempra Acquisition, EFH Corp. entered into various merger agreements, which failed to close, with other parties in connection with the EFH Bankruptcy Proceedings and the potential transfer of its indirect ownership interest in Oncor. For a summary of those merger agreements and related regulatory proceedings, please see Note 2 to Financial Statements in the 2017 Form 10-K. Sempra Acquisition In August 2017, EFH Corp. and EFIH entered into an Agreement and Plan of Merger (Sempra Merger Agreement) with Sempra and one of its wholly-owned subsidiaries (collectively, the Sempra Parties) that contemplated the Sempra Parties acquiring the ownership interests in Oncor that were indirectly held by EFH Corp. The Sempra Acquisition closed on March 9, 2018. As a result of the Sempra Acquisition, EFH Corp. merged with an indirect subsidiary of Sempra, with EFH Corp. (renamed STH) continuing as the surviving company and an indirect, wholly-owned subsidiary of Sempra. The Sempra Merger Agreement did not impose any conditions on the EFH Debtors regarding Texas Transmission’s minority interest in Oncor. Accordingly, the Sempra Merger Agreement provided for the acquisition by Sempra of the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH. In accordance with the Sempra Merger Agreement, Sempra paid cash consideration of approximately $9.45 billion to acquire the indirect 80.03% outstanding membership interest in Oncor. In addition, in a separate transaction, Oncor Holdings acquired 0.22% of the outstanding membership interests in Oncor from Investment LLC. After the Sempra Acquisition, Texas Transmission continued to own 19.75% of Oncor’s outstanding membership interests. The Sempra Merger Agreement was consummated on March 9, 2018 after obtaining the approval of the bankruptcy court in the EFH Bankruptcy Proceedings, the Federal Communications Commission and the PUCT. Pursuant to the terms of the Sempra Merger Agreement, in October 2017, Oncor and Sempra filed in PUCT Docket No 47675 a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by the amended joint plan of reorganization filed in September 2017 by the EFH Debtors (Sempra Plan). At its open meeting on March 8, 2018, the PUCT approved a final order adopting a settlement stipulation allowing the Sempra Acquisition to proceed. For more information regarding the Sempra Settlement Stipulation and the proceedings in PUCT Docket No. 47675, see “Sempra PUCT Proceedings” below. In connection with the closing of the Sempra Acquisition, Oncor’s Limited Liability Company Agreement was amended and restated in its entirety on March 9, 2018. The Limited Liability Company Agreement, among other things, provides for the management of Oncor by a board of directors consisting of 13 members, including seven “disinterested directors” (as defined in the Limited Liability Company Agreement), two directors designated indirectly by Sempra, two directors designated by Texas Transmission (subject to certain conditions) and two directors that are current or former officers of Oncor. Management Equity Purchase On March 9, 2018, Oncor entered into an Interest Transfer Agreement (OMI Agreement) with Investment LLC, Oncor Holdings and Sempra. Pursuant to the 2008 Equity Interests Plan for Key Employees of Oncor Electric Delivery Company LLC and its affiliates, certain members of Oncor’s management, including Oncor’s executive officers and independent directors on Oncor’s board of directors, were granted the opportunity to purchase Class B equity interests (Class B Interests) in Investment LLC, an entity whose only assets consist of equity interests in Oncor. Investment LLC held 1,396,008 of the outstanding limited liability company interests in Oncor (the OMI Interests), which represented 0.22% of the outstanding membership interests in Oncor. For a description of the amounts of Class B Interests that were beneficially owned by members of Oncor’s board of directors and each of Oncor’s named executive officers, see “Security Ownership of Certain Beneficial Owners and Management and Related Equity Holder Matters – Security Ownership of Equity Interests of Oncor of Certain Beneficial Owners and Management.” in the 2017 Form 10-K. Pursuant to the OMI Agreement, in connection with the closing of the Sempra Acquisition, Investment LLC transferred to Oncor Holdings all of the OMI Interests in exchange for $26 million in cash, which represents approximately $18.60 for each OMI Interest. PUCT Matters Related to EFH Bankruptcy Proceedings Previous Merger Agreement PUCT Proceedings Prior to consummation of the Sempra Acquisition, EFH Corp. entered into various merger agreements, which failed to close, with other parties in connection with the EFH Bankruptcy Proceedings and the potential transfer of its indirect ownership interest in Oncor. For a summary of those merger agreements and related PUCT proceedings, please see Note 2 to Financial Statements in the 2017 Form 10-K. Sempra PUCT Proceedings Pursuant to the terms of the Sempra Merger Agreement, in October 2017 Oncor and Sempra filed in PUCT Docket No. 47675 a joint application with the PUCT seeking certain regulatory approvals with respect to the Sempra Plan. In December 2017, Oncor and Sempra entered into a stipulation with the Staff of the PUCT, the Office of Public Utility Counsel, the Steering Committee of Cities Served by Oncor and the Texas Industrial Energy Consumers reflecting the parties’ settlement of all issues in the PUCT proceeding regarding the joint application. On January 5, 2018, Oncor, Sempra and the Staff of the PUCT made a joint filing with the PUCT requesting that the PUCT approve the acquisition, consistent with the governance, regulatory and operating commitments in a revised stipulation joined by two additional parties. On January 23, 2018, Oncor and Sempra filed an additional revision to the revised stipulation (Sempra Settlement Stipulation) and announced that two more parties had joined in the Sempra Settlement Stipulation. On February 2, 2018, Oncor and Sempra announced that all of the intervenors in PUCT Docket No. 47675 had signed on to the Sempra Settlement Stipulation. At its February 15, 2018 open meeting, the PUCT directed PUCT Staff to prepare an order based on the Sempra Settlement Stipulation for consideration by the PUCT at its open meeting on March 8, 2018. At the open meeting, the PUCT approved the final order. T he parties to the Sempra Settlement Stipulation agreed that Sempra’s acquisition of EFH Corp. was in the public interest and would bring substantial benefits. The Sempra Settlement Stipulation requested that the PUCT approve the Sempra Acquisition. The joint application filed with the PUCT and the Sempra Settlement Stipulation outline certain ring-fencing measures, governance mechanisms and restrictions that apply after the Sempra Acquisition. As a result of these ring-fencing measures, Sempra will not control Oncor, and the ring-fencing measures limit Sempra’s ability to direct the management, policies and operations of Oncor, including the deployment or disposition of Oncor’s assets, declarations of dividends, strategic planning and other important corporate issues and actions. These limitations include limited representation on the board of directors of Oncor. Pursuant to the order issued by the PUCT in PUCT Docket No. 47675 with respect to its approval of the transaction contemplated by the Sempra Plan (Sempra Order), following the consummation of the Sempra Acquisition, the board of directors of Oncor is required to consist of thirteen members and be constituted as follows: · seven members, which we refer to as disinterested directors, (i) shall be independent directors in all material respects under the rules of the New York Stock Exchange in relation to Sempra and its subsidiaries and affiliated entities and any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, and (ii) shall have no material relationship with Sempra or its affiliates or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings at the time of the Sempra Acquisition or within the previous ten years; · two members shall be designated by Sempra (through Oncor Holdings); · two members shall be appointed by Texas Transmission; and · two members shall be current or former officers of Oncor (the Oncor Officer Directors), initially Robert S. Shapard and E. Allen Nye, Jr., who are the chair of the Oncor board and chief executive of Oncor, respectively. In order for a current or former officer of Oncor to be eligible to serve as an Oncor Officer Director, such officer cannot have worked for Sempra or any of its affiliates (excluding Oncor Holdings and Oncor) or any other entity with a direct or indirect ownership interest in Oncor or Oncor Holdings in the ten-year period prior to such officer being employed by Oncor. Oncor Holdings, at the direction of STIH (a subsidiary of STH), which is a wholly-owned indirect subsidiary of, and controlled by, Sempra following the Sempra Acquisition), has the right to nominate and/or seek the removal of the Oncor Officer Directors, with such nomination or removal subject to approval by a majority of the Oncor board of directors. In addition, the Sempra Order provides that Oncor’s board cannot be overruled by the board of Sempra or any of its subsidiaries on dividend policy, the issuance of dividends or other distributions (except for contractual tax payments), debt issuance, capital expenditures, operation and maintenance expenditures, management and service fees, and appointment or removal of board members, provided that certain actions may also require the additional approval of the Oncor Holdings board of directors. The Sempra Order also provides that any changes to the size, composition, structure or rights of the board must first be approved by the PUCT. In addition, if Sempra acquires Texas Transmission’s interest in Oncor, the two board positions on Oncor’s board of directors that Texas Transmission is entitled to appoint shall be eliminated and the size of Oncor’s board of directors will be reduced by two. Additional regulatory commitments, governance mechanisms and restrictions provided in the Sempra Order include, among others: · A majority of the disinterested directors of Oncor must approve any annual or multi-year budget if the aggregate amount of capital expenditures or operating and maintenance expenditures in such budget is more than a 10% increase or decrease from the corresponding amounts of such expenditures in the budget for the preceding fiscal year or multi-year period, as applicable; · Oncor will make minimum aggregate capital expenditures equal to at least $7.5 billion over the period from January 1, 2018 through December 31, 2022 (subject to certain possible adjustments); · Sempra was required to make, within 60 days after the Sempra Acquisition, its proportionate share of the aggregate equity investment in Oncor in an amount necessary for Oncor to achieve a capital structure consisting of 57.5% long-term debt to 42.5% equity, as calculated for regulatory purposes; Sempra contributed $117 million in cash commensurate with its ownership interest to Oncor on April 23, 2018, as discussed in further detail in Note 9. · Oncor may not pay any dividends or make any other distributions (except for contractual tax payments) if a majority of its disinterested directors determines that it is in the best interests of Oncor to retain such amounts to meet expected future requirements; · At all times, Oncor will remain in compliance with the debt-to-equity ratio established by the PUCT from time to time for ratemaking purposes, and Oncor will not pay dividends or other distributions (except for contractual tax payments), if that payment would cause its debt-to-equity ratio to exceed the debt-to-equity ratio approved by the PUCT; · If the credit rating on Oncor’s senior secured debt by any of the three major rating agencies falls below BBB (or the equivalent), Oncor will suspend dividends and other distributions (except for contractual tax payments), unless otherwise allowed by the PUCT; · Without the prior approval of the PUCT, neither Sempra nor any of its affiliates (excluding Oncor) will incur, guaranty or pledge assets in respect of any indebtedness that is dependent on the revenues of Oncor in more than a proportionate degree than the other revenues of Sempra or on the stock of Oncor, and there will be no debt at STH or STIH at any time following the closing of the Sempra Acquisition; · Neither Oncor nor Oncor Holdings will lend money to or borrow money from Sempra or any of its affiliates (other than Oncor subsidiaries), or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, and neither Oncor nor Oncor Holdings will share credit facilities with Sempra or any of its affiliates (other than Oncor subsidiaries), or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings; · Oncor will not seek recovery in rates of any expenses or liabilities related to EFH Corp.’s bankruptcy, or (1) any tax liabilities resulting from the Vistra Spin-Off, (2) any asbestos claims relating to non-Oncor operations of EFH Corp. or (3) any make-whole claims by holders of debt securities issued by EFH Corp. or EFIH, and Sempra was required to file with the PUCT a plan providing for the extinguishment of the liabilities described in items (1) through (3) above, which protects Oncor from any harm (which plan was filed with the PUCT on April 6, 2018 in PUCT Docket No. 48119); · There must be maintained certain “separateness measures” that reinforce the financial separation of Oncor from STH and STH’s owners, including a requirement that dealings between Oncor, Oncor Holdings and their subsidiaries with Sempra, any of Sempra’s other affiliates or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, must be on an arm’s-length basis, limitations on affiliate transactions, separate recordkeeping requirements and a prohibition on pledging Oncor assets or stock for any entity other than Oncor; · No transaction costs or transition costs related to the Sempra Acquisition (excluding Oncor employee time) will be borne by Oncor’s customers nor included in Oncor’s rates; · Sempra will continue to hold indirectly at least 51% of the ownership interests in Oncor and Oncor Holdings for at least five years following the closing of the Sempra Acquisition, unless otherwise specifically authorized by the PUCT; and · Oncor will provide bill credits to electric delivery rates for ultimate credits to customers in an amount equal to 90% of any interest rate savings achieved due to any improvement in its credit ratings or market spreads compared to those as of June 30, 2017 until final rates are set in the next Oncor base rate case filed after PUCT Docket No. 46957 (except that savings will not be included in credits if already realized in rates); and one year after the Sempra Acquisition, Oncor will provide bill credits to electric delivery rates for inclusion in customer bills equal to 90% of any synergy savings until final rates are set in the next Oncor base rate proceeding after the 2017 rate review (PUCT Docket No. 46957), at which time any total synergy savings shall be reflected in Oncor’s rates. On September 7, 2018, Oncor filed its first semi-annual interest rate savings compliance report with the PUCT and began accruing a bill credit upon the issuance of its new debt in August 2018. | 2. EFH BANKRUPTCY PROCEEDINGS On the EFH Petition Date, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities are not parties to the EFH Bankruptcy Proceedings. We believe the “ring-fencing” measures discussed above mitigate our potential exposure to the EFH Bankruptcy Proceedings. See Note 1 and below for further information regarding the EFH Bankruptcy Proceedings and the proposed change in control of our indirect majority owner in connection with such proceedings. The U.S. Bankruptcy Code automatically enjoined, or stayed, us from judicial or administrative proceedings or filing of other actions against our affiliates or their property to recover, collect or secure our claims arising prior to the EFH Petition Date. Following the EFH Petition Date, EFH Corp. received approval from the bankruptcy court to pay or otherwise honor certain prepetition obligations generally designed to stabilize its operations. Included in the approval were the obligations owed to us representing our prepetition electricity delivery fees. As of December 31, 2017, we had collected our prepetition receivables from the Texas Holdings Group of approximately $129 million. In May 2016, the Debtors filed a joint Plan of Reorganization (2016 Plan of Reorganization) pursuant to Chapter 11 of the U.S. Bankruptcy Code and a related disclosure statement with the bankruptcy court. The 2016 Plan of Reorganization provided that the confirmation and effective date of the 2016 Plan of Reorganization with respect to the TCEH Debtors may occur separate from, and independent of, the confirmation and effective date of the 2016 Plan of Reorganization with respect to the EFH Debtors. In this regard, the bankruptcy court confirmed the 2016 Plan of Reorganization with respect to the TCEH Debtors in August 2016, and it became effective by its terms, and the spin-off of the TCEH Debtors from EFH Corp. (Vistra Spin-Off) occurred, effective October 3, 2016. As a result of the Vistra Spin-Off, Vistra and its subsidiaries, including Luminant and TXU Energy, ceased to be affiliates of ours as of October 3, 2016. The EFH Bankruptcy Proceedings continue to be a complex litigation matter and the full extent of potential impacts on us remain unknown. Bankruptcy courts have broad equitable powers, and as a result, outcomes in bankruptcy proceedings are inherently difficult to predict. We will continue to evaluate our affiliate transactions and contingencies throughout the EFH Bankruptcy Proceedings to determine any risks and resulting impacts on our results of operations, financial statements and cash flows. See Note 12 for details of Oncor’s related-party transactions with members of the Texas Holdings Group. Potential Change in Indirect Ownership of Oncor During the course of the EFH Bankruptcy Proceedings, certain plans of reorganization have been filed that contemplate the transfer of the ownership interests in Oncor that are indirectly held by EFH Corp. Below is a summary of certain matters relating to the potential change in indirect ownership of Oncor that have been proposed in the EFH Bankruptcy Proceedings . Prior Merger Agreements The following merger agreements relating to a potential change in indirect ownership of Oncor were entered into in connection with the EFH Bankruptcy Proceedings. Each of these prior merger agreements has been terminated in accordance with its respective terms. · In August 2015, the EFH Debtors entered into a merger and purchase agreement (Hunt Merger Agreement) with an investor group consisting of certain unsecured creditors of TCEH and an affiliate of Hunt Consolidated, Inc., as well as certain other investors designated by Hunt Consolidated, Inc. (collectively, the Hunt Investor Group), that would have led to a significant change in the indirect equity ownership of Oncor . In August 2015, at the request of and with the consent of EFH Corp. and EFIH, Oncor and Oncor Holdings entered into a letter agreement (Hunt Letter Agreement) with the purchasers party to the Hunt Merger Agreement that described certain corporate actions Oncor and Oncor Holdings would take in connection with the merger contemplated by the Hunt Merger Agreement as well as conditions to Oncor’s and Oncor Holdings’ obligations to take those actions. In September 2015, Oncor and the Hunt Investor Group filed a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by the Hunt Merger Agreement. The PUCT issued an order conditionally approving the joint application in March 2016 and in April 2016 the Hunt Investor Group and certain intervenors filed motions for rehearing. As discussed under “PUCT Matters Related to the EFH Bankruptcy Proceedings – Hunt PUCT Proceedings” below, in May 2016, the PUCT denied the motions for rehearing in PUCT Docket No. 45188 and the Hunt Merger Agreement was terminated. The Hunt Letter Agreement was also terminated pursuant to its terms. In June 2016 the Hunt Investor Group filed a petition with the Travis County District Court seeking review of the PUCT order. We cannot predict the results of the review or the ultimate disposition of PUCT Docket No. 45188, particularly in light of the termination of the Hunt Merger Agreement. · Following the termination of the Hunt Merger Agreement, in July 2016 EFH Corp. and EFIH entered into an Agreement and Plan of Merger (NEE Merger Agreement) with NextEra Energy, Inc. (NEE) and EFH Merger Co., LLC, a wholly-owned subsidiary of NEE, that provided for NEE’s acquisition of the equity interests in Oncor indirectly owned by EFH Corp. and EFIH. In addition, at the request of and with the consent of EFH Corp. and EFIH, on August 4, 2016, Oncor and Oncor Holdings entered into a letter agreement (NEE Letter Agreement) with NEE and EFH Merger Co., LLC that described certain corporate actions Oncor and Oncor Holdings would take in connection with the merger contemplated by the NEE Merger Agreement as well as conditions to Oncor’s and Oncor Holdings’ obligations to take those actions. Additionally, in October 2016, an affiliate of NEE entered into an Agreement and Plan of Merger (the TTI Merger Agreement) with Texas Transmission Holdings Corporation (TTHC), the parent of Texas Transmission, and certain of its affiliates to purchase Texas Transmission’s 19.75% equity interest in Oncor for approximately $2.4 billion. The bankruptcy court approved EFH Corp. and EFIH’s entry into the NEE Merger Agreement and related plan support agreement in September 2016 and confirmed an amended plan of reorganization in February 2017 (NEE Plan). The consummation of the transactions contemplated by the NEE Merger Agreement and related plan of reorganization and the TTI Merger Agreement was subject to various conditions precedent, including the approval of the PUCT. Oncor and NEE filed a joint application seeking certain regulatory approvals with respect to the NEE Merger Agreement and the TTI Merger Agreement in October 2016. The PUCT denied the application on April 13, 2017, issued an order on rehearing on June 7, 2017 re-affirming its decision that the proposed transaction was not in the public interest and denied NEE’s second motion for rehearing on June 29, 2017. Following these developments, on July 6, 2017, EFH and EFIH delivered a notice terminating the NEE Merger Agreement, which caused the NEE Plan to be null and void. The NEE Letter Agreement also terminated pursuant to its terms. As discussed under “PUCT Matters Related to the EFH Bankruptcy Proceedings” below, on July 13, 2017, NEE filed a petition with the Travis County District Court seeking review of the PUCT order (PUCT NEE Plan Order). We cannot assess the impact of the termination of the NEE Merger Agreement on the results of the review or ultimate disposition of the PUCT NEE Plan Order, or any associated impacts of such termination and matters relating to the PUCT NEE Plan Order on the TTI Merger Agreement and the transactions contemplated thereby. For more information regarding the TTI Merger Agreement and its related regulatory proceedings, see under “PUCT Matters Related to the EFH Bankruptcy Proceedings –NEE PUCT Proceedings” below. · Following the termination of the NEE Merger Agreement, on July 7, 2017, EFH Corp. and EFIH executed a merger agreement (BHE Merger Agreement) with Berkshire Hathaway Energy Company (BHE) and certain of its subsidiaries. The BHE Merger Agreement provided for the acquisition by BHE of the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH. In connection with the execution of the BHE Merger Agreement, on July 7, 2017, the EFH Debtors filed a joint plan of reorganization (BHE Plan) and a related disclosure statement. In addition, at the request of and with the consent of EFH Corp. and EFIH, on July 7, 2017, Oncor and Oncor Holdings entered into a letter agreement (BHE Letter Agreement) with BHE and its subsidiaries that were party to the BHE Merger Agreement that described certain corporate actions Oncor and Oncor Holdings would take in connection with the merger contemplated by the BHE Merger Agreement as well as conditions to Oncor’s and Oncor Holdings’ obligations to take those actions. The EFH Debtors terminated the BHE Merger Agreement on August 21, 2017 in connection with their entry into the Sempra Merger Agreement (as defined and discussed below), which caused the BHE Plan to become null and void. The BHE Letter Agreement also terminated pursuant to its terms. Further, by order dated September 7, 2017, the bankruptcy court ordered that the BHE Merger Agreement was terminated and not approved. Sempra Merger Agreement On August 15, 2017, the EFH Debtors received an alternative proposal from Sempra Energy (Sempra) that largely followed the structure of the BHE Plan. Following negotiations, on August 21, 2017, EFH Corp. and EFIH entered into an Agreement and Plan of Merger (Sempra Merger Agreement) with Sempra and one of its wholly-owned subsidiaries (collectively, the Sempra Parties). Pursuant to the Sempra Merger Agreement, EFH Corp. will be merged with an indirect subsidiary of Sempra, with EFH Corp. continuing as the surviving company and an indirect, wholly-owned subsidiary of Sempra. The Sempra Merger Agreement does not impose any conditions on the EFH Debtors regarding TTI’s minority interest in Oncor. Accordingly, the Sempra Merger Agreement provides for the acquisition by Sempra of the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH (Sempra Acquisition). Following the execution and delivery of the Sempra Merger Agreement, EFIH requested, pursuant to the Sempra Merger Agreement, that Oncor Holdings and Oncor enter into a letter agreement (Sempra Letter Agreement) with the Sempra Parties. The Sempra Letter Agreement was executed on August 25, 2017 and sets forth certain rights and obligations of the Oncor Ring-Fenced Entities and the Sempra Parties to cooperate in the manner set forth therein with respect to initial steps to be taken in connection with the acquisition of Reorganized EFH and the other transactions described in the Sempra Merger Agreement. Pursuant to the terms of the Sempra Letter Agreement, the Oncor Ring-Fenced Entities are to conduct, in all material respects, their businesses in the ordinary course of business and materially consistent with the plan for 2017 and 2018 contained in Oncor’s long-range business plan. The Sempra Letter Agreement also provides that the Oncor Ring-Fenced Entities will cooperate with the Sempra Parties to prepare and file all necessary applications for governmental approvals of the transactions contemplated by the Sempra Merger Agreement, including PUCT and FERC approvals. The Sempra Letter Agreement is not intended to give the Sempra Parties, directly or indirectly, the right to control or direct the operations of any of the Oncor Ring-Fenced Entities. Closing Conditions to the Sempra Merger Agreement The Sempra Merger Agreement is subject to customary closing conditions, including the approval of the bankruptcy court in the EFH Bankruptcy Proceedings, Federal Communications Commission and the PUCT. Certain conditions, such as approval from FERC, the Vermont Department of Financial Regulation and receipt of a private letter ruling from the IRS have already been satisfied. In connection with the execution of the Sempra Merger Agreement, on September 5, 2017, the EFH Debtors filed an amended joint plan of reorganization (Sempra Plan) and a related disclosure statement (Sempra Disclosure Statement). On September 6, 2017, the bankruptcy court authorized the EFH Debtors’ entry into the Sempra Merger Agreement, approved the Sempra Disclosure Statement and authorized the EFH Debtors to solicit votes on the Sempra Plan. By declaration submitted on November 1, 2017, the EFH Debtors certified that they had received sufficient votes to confirm the Sempra Plan. The hearing on confirmation of the Sempra Plan is scheduled to begin on February 26, 2018 in the bankruptcy court. Pursuant to the terms of the Sempra Merger Agreement, Oncor and Sempra filed a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by the Sempra Plan on October 5, 2017 in PUCT Docket No. 47675. On December 14, 2017, Oncor and Sempra entered into a stipulation with the Staff of the PUCT, the Office of Public Utility Counsel, the Steering Committee of Cities Served by Oncor and the Texas Industrial Energy Consumers reflecting the parties’ settlement of all issues in the PUCT proceeding regarding the joint application. On January 5, 2018, Oncor, Sempra and the Staff of the PUCT made a joint filing with the PUCT requesting that the PUCT approve the acquisition, consistent with the governance, regulatory and operating commitments in a revised stipulation joined by two additional parties. On January 23, 2018, Oncor and Sempra filed an additional revision to the revised stipulation (Sempra Settlement Stipulation) and announced that two more parties had joined in the Sempra Settlement Stipulation. On February 2, 2018, Oncor and Sempra announced that all of the intervenors in PUCT Docket No. 47675 had signed on to the Sempra Settlement Stipulation. At its February 15, 2018 open meeting, the PUCT directed PUCT Staff to prepare an order based on the Sempra Settlement Stipulation for consideration by the PUCT at its open meeting on March 8, 2018. We cannot predict what the form of any final order will be or the ultimate disposition in the PUCT docket. For more information regarding the Sempra Settlement Stipulation and the proceedings in PUCT Docket No. 47675, see “PUCT Matters Relating to EFH Bankruptcy Proceedings – Sempra PUCT Proceedings” below. We cannot predict the ultimate outcome of the EFH Bankruptcy Proceedings, including whether the Sempra Acquisition will (or when it will) close. There remain conditions and uncertainties relating to the confirmation of the Sempra Plan and it becoming effective and the consummation of the transactions contemplated by the Sempra Merger Agreement, including, without limitation, the ability to obtain required bankruptcy court approvals as well as the required regulatory approvals from the PUCT, as described below under “PUCT Matters Related to EFH Bankruptcy Proceedings.” As a result, we remain unable to predict how any reorganization of the EFH Debtors and the related matters ultimately will impact Oncor or what form any change in indirect ownership of Oncor may take. Assuming that all approvals are received, we currently expect that the Sempra Acquisition will close in the first half of 2018, although there can be no assurance that the Sempra Acquisition will be completed on that timetable, or at all. PUCT Matters Related to EFH Bankruptcy Proceedings Hunt Investor Group PUCT Proceedings In September 2015, Oncor and the Hunt Investor Group filed in PUCT Docket No. 45188 a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by a plan of reorganization in the EFH Bankruptcy Proceedings. In March 2016, the PUCT issued an order conditionally approving the joint application. In April 2016, the Hunt Investor Group and certain intervenors in PUCT Docket No. 45188 filed motions for rehearing and in May 2016, the PUCT denied such motions and the order became final. In May 2016, the plan of reorganization and the Hunt Merger Agreement that contemplated the transactions in PUCT Docket No. 45188 were terminated. The Hunt Investor Group filed a petition with the Travis County District Court in June 2016 seeking review of the order. We cannot predict the results of the review or the ultimate disposition of PUCT Docket No. 45188, particularly in light of the termination of the Hunt Merger Agreement. In connection with PUCT Docket No. 45188, certain cities that have retained original jurisdiction over electric utility rates passed resolutions directing Oncor to file rate review proceedings. Oncor made a rate filing with the PUCT and original jurisdiction cities to comply with their resolutions on March 17, 2017 in PUCT Docket No. 46957. In July 2017, we and certain parties to our rate review agreed to a settlement of that rate review, and on August 2, 2017 a settlement agreement was filed that settled all issues in the docket. On October 13, 2017, the PUCT issued an order approving the settlement agreement, and on November 26, 2017, the new rates took effect. For more information, see Note 3 – “2017 Rate Review (PUCT Docket No. 46957).” NEE PUCT Proceedings The NEE Merger Agreement contemplated that Oncor and NEE file a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by the NEE Merger Agreement. Oncor and NEE filed that joint application in PUCT Docket No. 46238 in October 2016. The PUCT denied the application on April 13, 2017. The PUCT issued an order on rehearing on June 7, 2017 and denied NEE’s second motion for rehearing on June 29, 2017. On July 13, 2017, NEE filed a petition with the Travis County District Court seeking review of the PUCT order. We cannot predict the results of the review or the ultimate disposition of PUCT Docket No. 46238, particularly in light of the termination of the NEE Merger Agreement. On July 28, 2017, TTHC and NEE filed in PUCT Docket No. 47453 a joint application with the PUCT seeking certain regulatory approvals with respect to NEE’s proposed acquisition of the 19.75% minority interest in Oncor that is indirectly held by TTHC. The application requested that the PUCT issue an order disclaiming jurisdiction over the transaction or finding that the transaction is in the public interest and approved. On September 14, 2017, Oncor filed a motion to intervene as a party, but not as an applicant, in PUCT Docket No. 47453. On October 26, 2017, the PUCT voted to dismiss the application without prejudice on jurisdictional grounds and ordered that any future filing of the application must include the affected utility (in this case Oncor) as an applicant. The PUCT further ordered that in any such filing Oncor is not required to seek approval of the application or any other specific relief. On October 31, 2017, TTHC notified the PUCT that it had terminated the TTI Merger Agreement with NEE. NEE filed a motion for rehearing on November 20, 2017, which was not granted. On January 9, 2018, NEE filed a petition with the Travis County District Court seeking review of the PUCT order of dismissal. We cannot predict the results of the review or the ultimate disposition of PUCT Docket No. 47453, particularly in light of TTHC’s termination of the TTI Merger Agreement. Sempra PUCT Proceedings Oncor and Sempra filed a joint application with the PUCT seeking certain regulatory approvals with respect to the transactions contemplated by the Sempra Plan on October 5, 2017 in PUCT Docket No. 47675. On December 14, 2017, Oncor and Sempra entered into a stipulation with the Staff of the PUCT, the Office of Public Utility Counsel, the Steering Committee of Cities Served by Oncor and the Texas Industrial Energy Consumers reflecting the parties’ settlement of all issues in the PUCT proceeding regarding the joint application. On January 5, 2018, Oncor, Sempra and the Staff of the PUCT made a joint filing with the PUCT requesting that the PUCT approve the acquisition, consistent with the governance, regulatory and operating commitments in a revised stipulation joined by two additional parties. On January 23, 2018, Oncor and Sempra filed an additional revision to the revised stipulation (Sempra Settlement Stipulation) and announced that two more parties had joined in the Sempra Settlement Stipulation. On February 2, 2018, Oncor and Sempra announced that all of the intervenors in PUCT Docket No. 47675 had signed on to the Sempra Settlement Stipulation. At its February 15, 2018 open meeting, the PUCT directed PUCT Staff to prepare an order based on the Sempra Settlement Stipulation for consideration by the PUCT at its open meeting on March 8, 2018. We cannot predict what the form of any final order will be or the ultimate disposition in the PUCT docket. T he parties to the Sempra Settlement Stipulation have agreed that Sempra’s acquisition of EFH Corp. is in the public interest and will bring substantial benefits. The Sempra Settlement Stipulation requests that the PUCT approve the Sempra Acquisition. Previously, EFH Corp. and Oncor implemented various ring-fencing measures to enhance Oncor’s separateness from its owners and to mitigate the risk that Oncor would be negatively impacted in the event of a bankruptcy or other adverse financial developments affecting EFH Corp. or EFH Corp.’s subsidiaries or owners. The existing ring-fencing measures are designed to create both legal and financial separation between the Oncor Ring-Fenced Entities, on the one hand, and EFH Corp. and its other affiliates and subsidiaries, on the other hand. The joint application filed with the PUCT and the Sempra Settlement Stipulation outline certain ring-fencing measures, governance mechanisms and restrictions that will apply after the Sempra Acquisition. As a result of these ring-fencing measures, Sempra will not control Oncor, and the ring-fencing measures limit Sempra’s ability to direct the management, policies and operations of Oncor, including the deployment or disposition of Oncor’s assets, declarations of dividends, strategic planning and other important corporate issues and actions. These limitations include limited representation on the board of directors of Oncor. Pursuant to the Sempra Settlement Stipulation, if the Sempra Acquisition is consummated, the board of directors of Oncor is expected to consist of thirteen members and be constituted as follows: · seven members, which we refer to as disinterested directors, will be (i) independent directors in all material respects under the rules of the New York Stock Exchange in relation to Sempra and its subsidiaries and affiliated entities and any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, and (ii) will have no material relationship with Sempra or its affiliates or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings at the time of the Sempra Acquisition or within the previous ten years; · two members will be designated by Sempra; · two members will be appointed by Texas Transmission; and · two members will be current or former officers of Oncor (the Oncor Officer Directors), initially Robert S. Shapard and E. Allen Nye, Jr., who no later than the closing of the Sempra Acquisition will be the chair of the Oncor board and chief executive officer of Oncor, respectively. In order for a current or former officer of Oncor to be eligible to serve as an Oncor Officer Director, such officer cannot have worked for Sempra or any of its affiliates (excluding Oncor Holdings and Oncor) or any other entity with a direct or indirect ownership interest in Oncor or Oncor Holdings in the ten year period prior to such officer being employed by Oncor. Oncor Holdings, at the direction of EFIH (a subsidiary of EFH, which will be a wholly owned indirect subsidiary of, and controlled by, Sempra following the Sempra Acquisition), will have the right to nominate and/or seek the removal of the Oncor Officer Directors, with such nomination or removal subject to approval by a majority of the Oncor board of directors. In addition, the Sempra Settlement Stipulation provides that Oncor’s board cannot be overruled by the board of Sempra or any of its subsidiaries on dividend policy, the issuance of dividends or other distributions (except for contractual tax payments), debt issuance, capital expenditures, operation and maintenance expenditures, management and service fees, and appointment or removal of board members, provided that certain actions may also require the additional approval of the Oncor Holdings board of directors. The Sempra Settlement Stipulation also provides that any changes to the size, composition, structure or rights of the board must first be approved by the PUCT. In addition, if Sempra acquires Texas Transmission’s interest in Oncor, the Sempra Settlement Agreement provides that the two board positions on Oncor’s board of directors that Texas Transmission is entitled to appoint shall be eliminated and the size of Oncor’s board of directors will be reduced by two. Additional regulatory commitments, governance mechanisms and restrictions provided in the Sempra Settlement Stipulation include, among others: · A majority of the disinterested directors of Oncor must approve any annual or multi-year budget if the aggregate amount of capital expenditures or operating and maintenance expenditures in such budget is more than a 10% increase or decrease from the corresponding amounts of such expenditures in the budget for the preceding fiscal year or multi-year period, as applicable; · Oncor will make minimum aggregate capital expenditures equal to at least $7.5 billion over the period from January 1, 2018 through December 31, 2022 (subject to certain possible adjustments); · Sempra has agreed to make, within 60 days after the Sempra Acquisition, its proportionate share of the aggregate equity investment in Oncor in an amount necessary for Oncor to achieve a capital structure consisting of 57.5% long-term debt to 42.5% equity, as calculated for regulatory purposes (until recently, Oncor’s regulatory capital structure required 40% equity, with the remaining 60% as debt); · Oncor may not pay any dividends or make any other distributions (except for contractual tax payments) if a majority of its disinterested directors determines that it is in the best interests of Oncor to retain such amounts to meet expected future requirements; · At all times, Oncor will remain in compliance with the debt-to-equity ratio established by the PUCT from time to time for ratemaking purposes, and Oncor will not pay dividends or other distributions (except for contractual tax payments), if that payment would cause its debt-to-equity ratio to exceed the debt-to-equity ratio approved by the PUCT; · Sempra will ensure that, as of the closing of the Sempra Acquisition, Oncor’s credit rating by all three major rating agencies will be at or above Oncor’s credit ratings as of June 30, 2017; · If the credit rating on Oncor’s senior secured debt by any of the three major rating agencies falls below BBB (or the equivalent), Oncor will suspend dividends and other distributions (except for contractual tax payments), unless otherwise allowed by the PUCT; · Without the prior approval of the PUCT, neither Sempra nor any of its affiliates (excluding Oncor) will incur, guaranty or pledge assets in respect of any indebtedness that is dependent on the revenues of Oncor in more than a proportionate degree than the other revenues of Sempra or on the stock of Oncor, and there will be no debt at EFH Corp. or EFIH at any time following the closing of the Sempra Acquisition; · Neither Oncor nor Oncor Holdings will lend money to or borrow money from Sempra or any of its affiliates (other than Oncor subsidiaries), or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, and neither Oncor nor Oncor Holdings will share credit facilities with Sempra or any of its affiliates (other than Oncor subsidiaries), or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings; · Oncor will not seek recovery in rates of any expenses or liabilities related to EFH Corp.’s bankruptcy, or (1) any tax liabilities resulting from the Vistra Spin-Off, (2) any asbestos claims relating to non-Oncor operations of EFH Corp. or (3) any make-whole claims by holders of debt securities issued by EFH Corp. or EFIH, and Sempra must file with the PUCT a plan providing for the extinguishment of the liabilities described in items (1) through (3) above, which protects Oncor from any harm; · There must be maintained certain “separateness measures” that reinforce the financial separation of Oncor from EFH Corp. and EFH Corp.’s owners, including a requirement that dealings between Oncor, Oncor Holdings and their subsidiaries with Sempra, any of Sempra’s other affiliates or any entity with a direct or indirect ownership interest in Oncor or Oncor Holdings, must be on an arm’s-length basis, limitations on affiliate transactions, separate recordkeeping requirements and a prohibition on pledging Oncor assets or stock for any entity other than Oncor; · No transaction costs or transition costs related to the Sempra Acquisition (excluding Oncor employee time) will be borne by Oncor’s customers nor included in Oncor’s rates; · Sempra will continue to hold indirectly at least 51% of the ownership interests in Oncor and Oncor Holdings for at least five years following the closing of the Sempra Acquisition, unless otherwise specifically authorized by the PUCT; and · Oncor will provide bill credits to electric delivery rates for ultimate credits to customers in an amount equal to 90% of any interest rate savings achieved due to any improvement in its credit ratings or market spreads compared to those as of June 30, 2017 until final rates are set in the next Oncor base rate case filed after PUCT Docket No. 46957 (except that savings will not be included in credits if already realized in rates); and one year after the Sempra Acquisition, Oncor will provide bill credits to electric delivery rates for inclusion in customer bills equal to 90% of any synergy savings until final rates are set in the next Oncor base rate proceeding after PUCT Docket No. 46957, at which time any total synergy savings shall be reflected in Oncor’s rates. If the PUCT does not accept the Sempra Settlement Stipulation as presented, or issues an order inconsistent with the terms of the stipulation, the parties have agreed that any party adversely affected by the alteration has the right to withdraw from the stipulation and to exercise all rights available to such party under the law. We cannot predict the results of the review or the ultimate disposition of PUCT Docket No. 47675. EFH Bankruptcy Proceedings Settlement Agreement In connection with the EFH Bankruptcy Proceedings, the EFH Debtors and various creditor parties entered into a settlement agreement (the Settlement Agreement) in August 2015 (as amended in September 2015) to compromise and settle, among other things (a) intercompany claims among the EFH Debtors, (b) claims and causes of actions against holders of first lien claims against TCEH and the agents under TCEH’s senior secured facilities, (c) claims and causes of action against holders of interests in EFH Corp. and certain related entities and (d) claims and causes of action against each of the EFH Debtors’ current and former directors, the Sponsor Group, managers and officers and other related entities. The Settlement Agreement contemplates a release of such claims upon approval of the Settlement Agreement by the bankruptcy court, which approval was obtained in December 2015. The Settlement Agreement settles substantially all inter-debtor claims through the effective date of the Settlement Agreement. These settled claims include potentially contentious inter-debtor claims, including various potential avoidance actions and claims ar |
Regulatory Matters
Regulatory Matters | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Regulatory Matters [Abstract] | ||
REGULATORY MATTERS | 3. REGULATORY MATTERS DCRF (PUCT Docket No. 48231) On April 5, 2018, we filed with the PUCT, as well as cities with original jurisdiction over Oncor’s rates, an application for approval of a distribution cost recovery factor (DCRF). The DCRF will allow Oncor to recover, primarily through its tariff for retail delivery service, certain costs related to its 2017 distribution investments. We requested a $19 million increase in annual distribution revenues in our DCRF application. On June 13, 2018, we filed an unopposed stipulation that reduced the annual distribution revenue increase from $19 million to $15 million. The PUCT approved the stipulation on August 30, 2018, and the distribution tariffs became effective September 1, 2018. Application to Decrease Rates Based on the TCJA of 2017 (PUCT Dock e t No. 48325) In 2018, we made filings to incorporate the impacts of the TCJA into our tariffs, including the reduced corporate income tax rate from 35% to 21% and amortization of excess deferred federal income taxes. In the filings, we proposed a total net decrease in the revenue requirement used to set transmission and distribution rates of approximately $181 million annually as compared to the revenue requirement approved in Oncor’s most recent rate review, PUCT Docket No. 46957. The proposal included annual rate reductions of $144 million related to the reduction in income tax expense currently included in rates and $37 million related to the amortization of excess deferred income taxes over the lives of related assets. In September 2018, we reached an unopposed stipulation regarding an overall settlement of the TCJA impacts. The settlement includes, on an annual basis, $144 million related to the reduction of income tax expense currently in rates and $75 million related to amortization of excess deferred federal income taxes. The settlement rates have been implemented as follows on an interim basis as we await final PUCT approval. · For transmission customers, our TCOS rate incorporated the tax rate reduction beginning March 27, 2018. On July 1, 2018, a new interim TCOS rate was approved, subject to reconciliation, including a reduction due to amortization of excess deferred federal income taxes. The settlement results in a reduction of about $79 million of annualized transmission base revenue requirement as compared to the revenue requirement approved in PUCT Docket No. 46957. · For distribution customers, interim rates implemented October 8, 2018 contain reductions for both the income tax expense currently in rates and the amortization of excess deferred tax expense. The settlement results in a reduction of about $140 million of annualized distribution base revenue requirement as compared to the revenue requirement approved in PUCT Docket No. 46957. In addition, we agreed to refund the tax rate differential amounts collected and deferred since January 1, 2018, through the date the changed tariffs became effective. For transmission customers, we will refund tax amounts collected and deferred through March 26, 2018. For distribution customers, we will refund tax amounts collected and deferred through October 7, 2018. We plan to refund the tax rate differential of approximately $75 million as a bill credit in December 2018. The pass-through of the impacts of the TCJA to ratepayers is not expected to impact net income. Amortization of excess deferred taxes will result in lower cash inflows as a result of reduced rates to end-use customers. | 3. REGULATORY MATTERS Change in Control Reviews See “PUCT Matters Related to EFH Bankruptcy Proceedings” in Note 2. 2017 Rate Review (PUCT Docket No. 46957) In July 2017, we and certain parties to our rate review agreed to a settlement of that rate review, and on August 2, 2017 a settlement agreement was filed with the PUCT that settled all issues in the docket. On October 13, 2017, the PUCT issued an order approving the settlement of the rate review, subject to closing of the Sharyland Asset Exchange, which closed on November 9, 2017. As a result of the Sharyland Asset Exchange closing on November 9, 2017, the contingency in the PUCT order in PUCT Docket No. 46957 was met and our new rates as set forth in that order took effect on November 27, 2017. As a result of the PUCT order, our annual distribution and transmission base rate revenues, net of eliminations, are expected to increase approximately $65 million excluding the impacts of the Sharyland Asset Exchange and the TCJA. The order also requires us to record as a regulatory liability, instead of revenue, the amount that we collect through our approved tariffs for federal income taxes that is above the new corporate federal income rate. We estimate that incorporating the new corporate federal income tax rate in our approved rate settlement agreement would have reduced our annual revenues and our tax expense by approximately $125 million. Other significant findings include a change in our authorized return on equity to 9.80% and a change in our authorized regulatory capital structure to 57.5% debt to 42.5% equity. Our previous authorized return on equity was 10.25% and our previous authorized regulatory capital structure was 60% debt to 40% equity. The PUCT order in PUCT Docket No. 46957 requires us to record a regulatory liability until the new authorized regulatory capital structure is met to reflect our actual capitalization prior to achieving the authorized capital structure. Once the authorized capital structure is attained, the regulatory liability will be returned to customers through the capital structure refund mechanism approved in the PUCT docket. We implemented the regulatory liability as of November 27, 2017. Sharyland Asset Exchange (PUCT Docket No. 47469) On July 21, 2017, we entered into the Sharyland Agreement with the Sharyland Entities. The Sharyland Agreement provided that we would exchange certain of our transmission assets and cash certain of the Sharyland Entities’ distribution assets (constituting substantially all of their electricity distribution business) and certain of their transmission assets. The transaction for assets between us and SDTS was structured to qualify, in part, as a simultaneous tax deferred like kind exchange of assets to the extent that the assets exchanged are of “like kind” (within the meaning of Section 1031 of the Internal Revenue Code of 1986 (as amended, the Code)). On August 4, 2017, we , SDTS and SU filed a joint application for sale, transfer, or merger in PUCT Docket No. 47469 requesting PUCT approvals of the Sharyland Asset Exchange, and on October 13, 2017, the PUCT issued an order approving the transactions. On November 9, 2017, the parties consummated the transactions. We exchanged approximately $383 million of our transmission assets, consisting of 517 circuit miles of 345 kV transmission lines, and approximately $25 million in cash for approximately $408 million of the Sharyland Entities’ distribution assets (constituting substantially all of their electricity distribution business) and certain of their transmission assets. We do not expect the Sharyland transaction will have a material effect on our results of operations, financial position or cash flows. For more information on the Sharyland Agreement and the Sharyland Asset Exchange, see Note 14 to Financial Statements. 2008 Rate Review (PUCT Docket No. 35717) In August 2009, the PUCT issued a final order with respect to our June 2008 rate review filing with the PUCT and 204 cities based on a test year ended December 31, 2007 (PUCT Docket No. 35717), and new rates were implemented in September 2009. We and four other parties appealed various portions of the rate review final order to a state district court. In January 2011, the district court signed its judgment reversing the PUCT with respect to two issues: the PUCT’s disallowance of certain franchise fees and the PUCT’s decision that PURA no longer requires imposition of a rate discount for state colleges and universities. We filed an appeal with the Texas Third Court of Appeals (Austin Court of Appeals) in February 2011 with respect to the issues we appealed to the district court and did not prevail upon, as well as the district court’s decision to reverse the PUCT with respect to discounts for state colleges and universities. In early August 2014, the Austin Court of Appeals reversed the district court and affirmed the PUCT with respect to the PUCT’s disallowance of certain franchise fees and the PUCT’s decision that PURA no longer requires imposition of a rate discount for state colleges and universities. The Austin Court of Appeals also reversed the PUCT and district court’s rejection of a proposed consolidated tax savings adjustment arising out of EFH Corp.’s ability to offset our taxable income against losses from other investments and remanded the issue to the PUCT to determine the amount of the consolidated tax savings adjustment. In late August 2014, we filed a motion on rehearing with the Austin Court of Appeals with respect to certain appeal issues on which we were not successful, including the consolidated tax savings adjustment. In December 2014, the Austin Court of Appeals issued its opinion, clarifying that it was rendering judgment on the rate discount for state colleges and universities issue (affirming that PURA no longer requires imposition of the rate discount) rather than remanding it to the PUCT, and dismissing the motions for rehearing regarding the franchise fee issue and the consolidated tax savings adjustment. We filed a petition for review with the Texas Supreme Court in February 2015. The Texas Supreme Court granted the petition for review and heard oral arguments in September 2016. On January 6, 2017, the Texas Supreme Court issued its opinion, unanimously ruling as follows on the three issues before it: · Consolidated tax savings adjustment - The Supreme Court reversed the Court of Appeals and upheld the PUCT’s decision not to make a consolidated tax savings adjustment, concluding that the PUCT had properly applied PURA Section 36.060 and that we no longer met the statutory criteria for imposition of such an adjustment. · State colleges and universities rate discount - The Supreme Court upheld the Court of Appeals’ and the PUCT’s decisions that no such discount was proper, concluding that PURA Section 36.351 requires a discount only for the provision of electric service and that, upon the start of retail competition, electric service is provided to end-use customers by REPs and not TDUs. · Municipal franchise fees - The Supreme Court reversed the Court of Appeals’ and the PUCT’s disallowance of certain franchise fees, ruling that the relevant PURA provision did not limit negotiated franchise fees to a one-time opportunity upon the expiration of a franchise that was in effect on September 1, 1999, but that such renegotiations may take place at any time. The Texas Supreme Court issued its mandate on February 16, 2017. On February 17, 2017, we filed a tariff modification with the PUCT to immediately remove the state colleges and universities discount rider, and on February 23, 2017, the PUCT opened Docket No. 46884 to consider the remand from the Texas Supreme Court. The Docket No. 46957 rate review order granted the recovery of the municipal franchise fees through a surcharge over approximately nine months beginning November 27, 2017. We are involved in various other regulatory proceedings in the normal course of business, the ultimate resolution of which, in the opinion of management, should not have a material effect upon our financial position, results of operations or cash flows. |
Provision In Lieu Of Income Tax
Provision In Lieu Of Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Provision In Lieu Of Income Taxes [Abstract] | |
PROVISION IN LIEU OF INCOME TAXES | 4. PROVISION IN LIEU OF INCOME TAXES Tax Cuts and Jobs Act (TCJA) On December 22, 2017, President Trump signed the TCJA into law. Substantially all of the provisions of the TCJA are effective for our taxable years beginning January 1, 2018. The TCJA includes significant changes to the Code, including amendments which significantly change the taxation of business entities and includes specific provisions related to regulated public utilities such as Oncor. The most significant TCJA change that impacts us is the reduction in the corporate federal income tax rate from 35% to 21% . The specific provisions related to regulated public utilities in the TCJA applicable to us include the continued deductibility of interest expense, the elimination of bonus depreciation on certain property acquired after September 27, 2017 and certain rate normalization requirements for accelerated depreciation benefits. Changes in the Code from the TCJA had a material impact on our financial statements in 2017. Under GAAP, specifically ASC Topic 740, Income Taxes, the tax effects of changes in tax laws must be recognized when the law is enacted, or December 22, 2017 for the TCJA. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Based on this, our liability in lieu of deferred income taxes was re-measured at the date of enactment using the new tax rate. We have completed the measurement and accounting for the effects of the TCJA which have been reflected in our December 31, 2017 financial statements. The re-measurement of our liability in lieu of deferred income taxes related to our non-regulated operations resulted in a $21 million charge to the nonoperating provision in lieu of tax expense for the year ending December 31, 2017. The re-measurement of our liability in lieu of deferred income taxes related to our regulated operations resulted in a $1.6 billion decrease in our liability in lieu of deferred income taxes at December 22, 2017 and a corresponding increase in our regulatory liabilities. The increase in regulatory liabilities reflects our obligation, as required by PUCT order in Docket No. 46957, to refund to utility customers any excess deferred tax related balances created by the reduction in the corporate federal income tax rate. The TCJA includes provisions that stipulate how quickly certain of these excess deferred tax related balances may be refunded to our customers through reductions in our future rates. These adjustments had no impact on our 2017 cash flows. Also, beginning January 1, 2018, Oncor will record as a regulatory liability the amount that Oncor collects through its approved tariffs for federal income taxes that is above the new corporate federal income tax rate in compliance with PUCT Docket No. 46957. We estimate that incorporating the new corporate federal income tax rate in our approved rate settlement agreement would have reduced our annual revenues and our tax expense by approximately $125 million. Components of Liability in Lieu of Deferred Income Taxes The components of our liability in lieu of deferred income taxes are provided in the table below. At Ended December 31, 2017 2016 Deferred Tax Related Assets: Employee benefit liabilities $ 253 $ 413 Regulatory liabilities 15 26 Other 7 79 Total 275 518 Deferred Tax Related Liabilities: Property, plant and equipment 1,551 2,892 Regulatory assets 240 412 Other 1 2 Total 1,792 3,306 Liability in lieu of deferred income taxes - net $ 1,517 $ 2,788 Provision (Benefit) in Lieu of Income Taxes The components of our reported provision (benefit) in lieu of income taxes are as follows: Year Ended December 31, 2017 2016 2015 Reported in operating expenses: Current: U.S. federal $ (55) $ 60 $ 189 State 20 20 32 Deferred: U.S. federal 292 181 55 State - - (13) Amortization of investment tax credits (2) (2) (3) Total reported in operating expenses 255 259 260 Reported in other income and deductions: Current: U.S. federal (5) (5) (7) State - - - Deferred federal 17 - (1) Total reported in other income and deductions 12 (5) (8) Total provision in lieu of income taxes $ 267 $ 254 $ 252 Reconciliation of provision in lieu of income taxes computed at the U.S. federal statutory rate to provision in lieu of income taxes: Year Ended December 31, 2017 2016 2015 Income before provision in lieu of income taxes $ 686 $ 685 $ 684 Provision in lieu of income taxes at the U.S. federal statutory rate of 35% $ 240 $ 240 $ 239 Amortization of investment tax credits – net of deferred tax effect (2) (2) (3) Amortization (under regulatory accounting) of statutory tax rate changes (1) (1) (1) Impact of federal statutory rate change from 35% to 21% 21 - - Texas margin tax, net of federal tax benefit 13 13 13 Nontaxable gains on benefit plan investments (4) - - Other, including audit settlements - 4 4 Reported provision in lieu of income taxes $ 267 $ 254 $ 252 Effective rate 38.9% 37.1% 36.8% The net amounts of $1.517 billion and $2.788 billion reported in the balance sheets at December 31, 2017 and 2016, respectively, as liability in lieu of deferred income taxes include amounts previously recorded as net deferred tax liabilities. Upon the sale of equity interests to Texas Transmission and Investment LLC in 2008, we became a partnership for U.S. federal income tax purposes, and the temporary differences that gave rise to the deferred taxes will, over time, become taxable to the equity holders. Under a tax sharing agreement among us and our equity holders (see Note 1), we make payments to the equity holders related to income taxes when amounts would have become due to the IRS if Oncor was taxed as a corporation. Accordingly, as the temporary differences become taxable, we will pay the equity holders. In the event such amounts are not paid under the tax sharing agreement, it is probable that this regulatory liability will continue to be included in Oncor’s rate setting processes. Accounting For Uncertainty in Provision in Lieu of Income Taxes Prior to November 2008, we were a member of the EFH Corp. consolidated tax group. The examination and applicable appeals process of EFH Corp. and its subsidiaries’ federal income tax returns for the years ending prior to January 1, 2016 are complete. The statute of limitations is open for our partnership tax returns for the years beginning after December 31, 2009, however, the IRS has declined to review the tax returns for the years ending prior to January 1, 2016. Texas margin tax returns are under examination or still open for examination for tax years beginning after 2014. Subsequent to November 2008, we are not a member of the EFH Corp. consolidated federal tax group and assess our liability for uncertain tax positions in our partnership returns. The following table summarizes the changes to the uncertain tax positions reported in other noncurrent liabilities in our consolidated balance sheet during the years ended December 31, 2017, 2016 and 2015: 2017 2016 2015 Balance at January 1, excluding interest and penalties $ 3 $ 3 $ 2 Additions based on tax positions related to prior years - - - Reductions based on tax positions related to prior years (3) - - Settlements with taxing authorities - - 1 Balance at December 31, excluding interest and penalties $ - $ 3 $ 3 Of the balances at both December 31, 2016 and 2015, $3 million represents tax positions for which the uncertainty relates to the timing of recognition for tax purposes. The disallowance of such positions would not affect the effective tax rate, but would accelerate the payment of cash under the tax sharing agreement to an earlier period. In the first quarter 2017, EFH Corp. settled all open tax claims with the IRS. As a result, we reduced the liability for uncertain tax positions by $3 million. This reduction is reported as a decrease in income taxes in 2017. Noncurrent liabilities included no accrued interest related to uncertain tax positions at December 31, 2017 and 2016. There were no amounts recorded related to interest and penalties in the years ended December 31, 2017, 2016 and 2015. The federal income tax benefit on the interest accrued on uncertain tax positions is recorded as liability in lieu of deferred income taxes. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenues [Abstract] | |
REVENUES | 4. REVENUES General Our revenue is billed monthly under tariffs approved by the PUCT and the majority of revenues are related to providing electric delivery service to consumers. Tariff rates are designed to recover the cost of providing electric delivery service to customers including a reasonable rate of return on invested capital. As the units delivered can be directly measured, our revenues are recognized when the underlying service has been provided in an amount prescribed by the related tariff. We recognize revenue in the amount that we have the right to invoice. Substantially all of our revenues are from contracts with customers (Topic 606 revenues) except for alternative revenue program revenues discussed below. Reconcilable Tariffs The PUCT has designated certain tariffs (primarily TCRF, EECRF and previously AMS surcharges) as reconcilable, which means the differences between amounts billed under these tariffs and the related incurred costs are deferred as either regulatory assets or regulatory liabilities. Accordingly, at prescribed intervals, future tariffs are adjusted to either repay regulatory liabilities or collect regulatory assets. As a result of the 2017 rate review order effective November 27, 2017, the AMS surcharges ceased and AMS related expenses and return became recoverable through distribution base rates. Alternative Revenue Program The PUCT has implemented an incentive program allowing us to earn performance bonuses by exceeding PUCT energy efficiency program targets. This incentive program is considered an “alternative revenue program” and the related performance bonus revenues are outside of the scope of Topic 606. Annual performance bonuses are recognized as revenue when approved by the PUCT, typically in the third or fourth quarter each year. Disaggregation of Revenues The following table reflects electric delivery revenues disaggregated by tariff for the three and nine months ended September 30, 2018: Three Months Ended September 30, Nine Months Ended September 30, Operating revenues 2018 2018 Revenues contributing to earnings: Distribution base revenues $ 604 $ 1,640 Transmission base revenues (TCOS revenues) Billed to third-party wholesale customers 137 403 Billed to REPs serving Oncor distribution customers, through TCRF 77 234 Total transmission base revenues 214 637 Other miscellaneous revenues 17 48 Total revenues contributing to earnings 835 2,325 Revenues collected for pass-through expenses: TCRF - third-party wholesale transmission service 237 719 EECRF and other regulatory charges 23 62 Revenues collected for pass-through expenses 260 781 Total operating revenues $ 1,095 $ 3,106 Customers Our distribution customers consist of approximately 90 REPs and certain electric cooperatives in our certificated service area. The consumers of the electricity we deliver are free to choose their electricity supplier from REPs who compete for their business. Our transmission base revenues are collected from load serving entities benefitting from our transmission system. Our transmission customers consist of municipalities, electric cooperatives and other distribution companies. REP subsidiaries of our two largest counterparties represented 27% and 22% of our total operating revenues for the three months ended September 30, 2018, and 24% and 19% of our total operating revenues for the nine months ended September 30, 2018. No other customer represented more than 10% of our total operating revenues. Variability Our revenues and cash flows are subject to seasonality, timing of customer billings, weather conditions and other electricity usage drivers, with revenues being highest in the summer. Payment is due 35 days after invoicing. Under a PUCT rule relating to the Certification of Retail Electric Providers, write-offs of uncollectible amounts owed by nonaffiliated REPs are recoverable as a regulatory asset. Pass-through expenses Expenses which are allowed to be passed-through to customers (primarily, third party wholesale transmission service and energy efficiency program costs) are generally recognized as revenue at the time the costs are incurred. Franchise taxes are assessed by local governmental bodies, based on kWh delivered and are not a “pass-through” item. The rates we charge customers are intended to recover the franchise taxes, but we are not acting as an agent to collect the taxes from customers; therefore, franchise taxes are reported as a principal component of “taxes other than amounts related to income taxes” instead of a reduction to “revenues” in the income statement. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Regulatory Assets and Liabilities [Abstract] | ||
REGULATORY ASSETS AND LIABILITIES | 5. REGULATORY ASSETS AND LIABILITIES Recognition of regulatory assets and liabilities and the periods over which they are to be recovered or refunded through rate regulation are determined by the PUCT. Components of our regulatory assets and liabilities as of September 30, 2018 and December 31, 2017 are provided in the table below. Amounts not earning a return through rate regulation are noted. Remaining Rate Recovery/Amortization Period at Carrying Amount At September 30, 2018 September 30, 2018 December 31, 2017 Regulatory assets: Employee retirement costs being amortized 10 years $ 305 $ 331 Unrecovered employee retirement costs incurred since the last rate review period (a) To be determined 30 30 Employee retirement liability (a)(b)(c) To be determined 800 854 Employee retirement plans - non-service costs Lives of related assets 33 - Self-insurance reserve (primarily storm recovery costs) being amortized 10 years 362 394 Unrecovered self-insurance reserve incurred since the last rate review period (a) To be determined 53 49 Securities reacquisition costs Lives of related debt 10 12 Deferred conventional meter and metering facilities depreciation 3 years 42 57 Under-recovered AMS costs 10 years 190 206 Excess deferred income taxes - 197 Energy efficiency performance bonus (b) 1 year or less 3 12 Other regulatory assets Various 22 38 Total regulatory assets 1,850 2,180 Regulatory liabilities: Estimated net removal costs Lives of related assets 1,006 954 Excess deferred income taxes Primarily over lives of related assets 1,587 1,789 Federal income taxes - over-collected due to TCJA rate change 1 year or less 75 - Over-recovered wholesale transmission service expense (b) 1 year or less 73 47 Other regulatory liabilities Various 22 17 Total regulatory liabilities 2,763 2,807 Net regulatory assets (liabilities) $ (913) $ (627) ____________ (a) Recovery is specifically authorized by statute or by the PUCT, subject to reasonableness review. (b) Not earning a return in the regulatory rate-setting process. (c) Represents unfunded liabilities recorded in accordance with pension and OPEB accounting standards. | 5. REGULATORY ASSETS AND LIABILITIES Recognition of regulatory assets and liabilities and the periods which they are to be recovered or refunded through rate regulation are determined by the PUCT. Components of our regulatory assets and liabilities and their remaining periods as of December 31, 2017 are provided in the table below. Amounts not earning a return through rate regulation are noted. Remaining Rate Recovery/Amortization Period at Carrying Amount At December 31, 2017 December 31, 2017 December 31, 2016 Regulatory assets: Employee retirement costs being amortized 10 years $ 331 $ 23 Unrecovered employee retirement costs incurred since the last rate review period (b) To be determined 30 327 Employee retirement liability (a)(b)(c) To be determined 854 849 Self-insurance reserve (primarily storm recovery costs) being amortized 10 years 394 64 Unrecovered self-insurance reserve incurred since the last rate review period (b) To be determined 49 367 Securities reacquisition costs (post-industry restructure) Lives of related debt 12 13 Deferred conventional meter and metering facilities depreciation 3 years 57 78 Under-recovered AMS costs 10 years 206 209 Unprotected excess deferred taxes Various 197 - Energy efficiency performance bonus (a) 1 year or less 12 10 Other regulatory assets Various 38 34 Total regulatory assets 2,180 1,974 Regulatory liabilities: Estimated net removal costs Lives of related assets 954 819 Protected excess deferred taxes Various 1,595 3 Unprotected excess deferred taxes Various 194 - Over-recovered wholesale transmission service expense (a) 1 year or less 47 10 Other regulatory liabilities Various 17 24 Total regulatory liabilities 2,807 856 Net regulatory assets (liabilities) $ (627) $ 1,118 ____________ (a) Not earning a return in the regulatory rate-setting process. (b) Recovery is specifically authorized by statute or by the PUCT, subject to reasonableness review. (c) Represents unfunded liabilities recorded in accordance with pension and OPEB accounting standards. The excess deferred tax related balances at December 31, 2017 are primarily the result of the TCJA corporate federal income tax rate reduction from 35% to 21%. These regulatory assets and liabilities reflect our obligation, as required by PUCT order in Docket No. 46957, to refund to utility customers any excess deferred tax related balances created by the reduction in the corporate federal income tax rate. The TCJA includes provisions that stipulate how quickly certain of these excess deferred tax related balances, labeled “Protected excess deferred taxes”, may be refunded to our customers through reductions in our future rates. These adjustments had no impact on our 2017 cash flows. In October 2017, the PUCT issued a final order in our rate review filed in March 2017. The rate review included a determination of the recoverability of regulatory assets at December 31, 2016, including the recoverability period of those assets deemed allowable by the PUCT. The rate review resulted in significant amounts being reclassified to “Employee retirement costs being amortized” and “Self-insurance reserve being amortized” as reflected in the table above. In September 2008, the PUCT approved a settlement for us to recover our estimated future investment for advanced metering deployment. We began billing the AMS surcharge in the January 2009 billing month cycle. The surcharge was expected to total $1.023 billion over the 11 -year recovery period and includes a cost recovery factor of $2.19 per month per residential retail customer and $2.39 to $5.15 per month for non-residential retail customers. We accounted for the difference between the surcharge billings for advanced metering facilities and the allowable revenues under the surcharge provisions, which were based on expenditures and an allowed return, as a regulatory asset or liability. Such differences arose principally as a result of timing of expenditures or cost increases. In accordance with the PUCT Docket No 46957 rate review final order, effective November 27, 2017, the AMS surcharge ceased and ongoing AMS costs are being recovered through base rates which include the recovery of the AMS regulatory asset over a 10 -year period. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Short-Term Borrowings [Abstract] | ||
SHORT-TERM BORROWINGS | 6. SHORT-TERM BORROWINGS At September 30, 2018 and December 31, 2017, outstanding short-term borrowings under our commercial paper program (CP Program) and revolving credit facility (Credit Facility) consisted of the following: At September 30, At December 31, 2018 2017 Total borrowing capacity $ 2,000 $ 2,000 Commercial paper outstanding (a) (1,099) - Credit facility outstanding (b) - (950) Letters of credit outstanding (c) (9) (9) Available unused credit $ 892 $ 1,041 ____________ a) The weighted average interest rate for commercial paper at September 30, 2018 was 2.45% . b) The weighted average interest rate for the credit facility at December 31, 2017 was 2.62% . c) Interest rates on outstanding letters of credit at September 30, 2018 and December 31, 2017 were 1.200% and 1.325% , respectively, based on our credit ratings. Commercial Paper Program In March 2018, we established the CP Program, under which we may issue unsecured commercial paper notes (Notes) on a private placement basis up to a maximum aggregate face or principal amount outstanding at any time of $2.0 billion. We also entered into commercial paper dealer agreements (Dealer Agreements) with commercial paper dealers (Dealers). The Dealer Agreements are substantially identical in all material respects except as to the parties thereto. A national bank acts as the issuing and paying agent under the CP Program pursuant to the terms of an issuing and paying agent agreement. The proceeds of Notes issued under the CP Program are used for working capital and general corporate purposes. The CP Program obtains liquidity support from our Credit Facility discussed below. If at any time funds are not available on favorable terms under the CP Program, we may utilize the Credit Facility for funding. The Dealer Agreements provide the terms under which the Dealers will either purchase from us or arrange for the sale by us of Notes pursuant to an exemption from federal and state securities laws. The Dealer Agreements contain customary representations, warranties, covenants and indemnification provisions. The maturities of the Notes will vary, but may not exceed 364 days from the date of issue. The Notes will be sold at a discount from par or, alternatively, will be sold at par and bear interest. Interest rates will vary based upon market conditions at the time of issuance of the Notes and may be fixed or floating determined by reference to a base rate and spread. From time to time, one or more of the Dealers and certain of their respective affiliates have provided, and may in the future provide, commercial banking, investment banking and other financial advisory services to us and our affiliates for which the Dealers have received or will receive customary fees and expenses. In addition, certain of the Dealers or their affiliates are lenders under the Credit Facility. Revolving Credit Facility At September 30, 2018, we had a $2.0 billion unsecured revolving Credit Facility to be used for working capital and general corporate purposes, issuances of letters of credit and support for commercial paper issuances . We may request increases in our borrowing capacity in increments of not less than $100 million, not to exceed $400 million in the aggregate provided certain conditions are met, including lender approvals. The Credit Facility has a five -year term expiring in November 2022 and gives us the option of requesting up to two one -year extensions, with such extensions subject to certain conditions and lender approvals. Borrowings are classified as short-term on the balance sheet. At September 30, 2018, we had no outstanding borrowings under the Credit Facility. Borrowings under the Credit Facility bear interest at per annum rates equal to, at our option, (i) LIBOR plus a spread ranging from 0 .875% to 1.50% depending on credit ratings assigned to our senior secured non-credit enhanced long-term debt or (ii) an alternate base rate (the highest of (1) the prime rate of JPMorgan Chase, (2) the federal funds effective rate plus 0.50%, and (3) adjusted LIBOR plus 1.00%) plus a spread ranging from 0.00% to 0.50% depending on credit ratings assigned to our senior secured non-credit enhanced long-term debt. At September 30, 2018, the applicable interest rate for any outstanding borrowings would have been LIBOR plus 1.00% . Amounts borrowed under the Credit Facility , once repaid, can be borrowed again from time to time. An unused commitment fee is payable quarterly in arrears and upon termination or commitment reduction at a rate equal to 0.075% to 0.225% (such spread depending on certain credit ratings assigned to our senior secured debt) of the daily unused commitments under the Credit Facility . At September 30, 2018, a commitment fee (at a rate of 0.100% per annum) was payable on the unfunded commitments under the Credit Facility, based on our current credit ratings. Letter of credit fees on the stated amount of letters of credit issued under the Credit Facility are payable to the lenders quarterly in arrears and upon termination at a rate per annum equal to the spread over adjusted LIBOR. Customary fronting and administrative fees are also payable to letter of credit fronting banks. Under the terms of the Credit Facility, the commitments of the lenders to make loans to us are several and not joint. Accordingly, if any lender fails to make loans to us, our available liquidity could be reduced by an amount up to the aggregate amount of such lender’s commitments under the facility. The Credit Facility contains customary covenants for facilities of this type, restricting, subject to certain exceptions, us and our subsidiaries from, among other things: incurring certain additional liens (not including liens relating to obligations secured pursuant to our Deed of Trust, which are permitted); entering into mergers and consolidations; sales of substantial assets and acquisitions and investments in subsidiaries. In addition, the Credit Facility requires that we maintain a consolidated senior debt-to-capitalization ratio of no greater than 0.65 to 1.00 and observe certain customary reporting requirements and other affirmative covenants. For purposes of the ratio, debt is calculated as indebtedness defined in the Credit Facility (principally, the sum of long-term debt, any capital leases, short-term debt and debt due currently in accordance with GAAP). Capitalization is calculated as membership interests determined in accordance with GAAP plus indebtedness described above. At September 30, 2018, we were in compliance with this and all other covenants. | 6. SHORT-TERM BORROWINGS On November 17, 2017, we entered into a new $2.0 billion unsecured revolving credit facility (2017 Credit Facility) to be used for working capital and general corporate purposes, issuances of letters of credit and support for any commercial paper issuances. We may request increases in our borrowing capacity in increments of not less than $100 million, not to exceed $400 million in the aggregate, provided certain conditions are met, including lender approvals. The 2017 Credit Facility has a five-year term expiring in November 2022 and gives us the option of requesting up to two one -year extensions, with such extensions subject to certain conditions and lender approvals. The 2017 Credit Facility replaced our previous $2.0 billion secured revolving credit facility (previous credit facility), which was terminated in connection with our entrance into the 2017 Credit Facility. Borrowings under our previous credit facility were secured with the lien of the Deed of Trust discussed in Note 7 below. Borrowings are classified as short-term on the balance sheet. At December 31, 2017, we had outstanding borrowings under the 2017 Credit Facility totaling $950 million with an interest rate of 2.62% per annum and outstanding letters of credit totaling $9 million. At December 31, 2016, we had outstanding borrowings under our previous credit facility totaling $789 million with an interest rate of 1.72% and outstanding letters of credit totaling $7 million. Borrowings under the 2017 Credit Facility bear interest at per annum rates equal to, at our option, (i) adjusted LIBOR plus a spread ranging from 0 .875% to 1.50% depending on credit ratings assigned to our senior secured non-credit enhanced long-term debt or (ii) an alternate base rate (the highest of (1) the prime rate of JPMorgan Chase, (2) the federal funds effective rate plus 0.50% , and (3) adjusted LIBOR plus 1.00% ) plus a spread ranging from 0.00% to 0.50% depending on credit ratings assigned to our senior secured non-credit enhanced long-term debt. At December 31, 2017, all outstanding borrowings bore interest at LIBOR plus 1.125% . Amounts borrowed under the 2017 Credit Facility, once repaid, can be borrowed again from time to time. An unused commitment fee is payable quarterly in arrears and upon termination or commitment reduction at a rate equal to 0.075% to 0.225% (such spread depending on certain credit ratings assigned to our senior secured debt) of the daily unused commitments under the 2017 Credit Facility. Letter of credit fees on the stated amount of letters of credit issued under the 2017 Credit Facility are payable to the lenders quarterly in arrears and upon termination at a rate per annum equal to the spread over adjusted LIBOR. Customary fronting and administrative fees are also payable to letter of credit fronting banks. At December 31, 2017, letters of credit bore interest at 1.325% , and a commitment fee (at a rate of 0.125% per annum) was payable on the unfunded commitments under the 2017 Credit Facility, each based on our current credit ratings. Under the terms of the 2017 Credit Facility, the commitments of the lenders to make loans to us are several and not joint. Accordingly, if any lender fails to make loans to us, our available liquidity could be reduced by an amount up to the aggregate amount of such lender’s commitments under the facility. Subject to the limitations described below, borrowing capacity available under the 2017 Credit Facility at December 31, 2017 was $1.041 billion, and borrowing capacity under our previous credit facility at December 31, 2016 was $1.204 billion and could be fully drawn. The 2017 Credit Facility contains customary covenants for facilities of this type, restricting, subject to certain exceptions, us and our subsidiaries from, among other things: incurring certain additional liens (not including liens relating to obligations secured pursuant to our Deed of Trust, which are permitted); entering into mergers and consolidations; sales of substantial assets and acquisitions and investments in subsidiaries. In addition, the 2017 Credit Facility requires that we maintain a consolidated senior debt-to-capitalization ratio of no greater than 0.65 to 1.00 and observe certain customary reporting requirements and other affirmative covenants. For purposes of the ratio, debt is calculated as indebtedness defined in the 2017 Credit Facility (principally, the sum of long-term debt, any capital leases, short-term debt and debt due currently in accordance with GAAP). Capitalization is calculated as membership interests determined in accordance with GAAP plus indebtedness described above. At December 31, 2017, we were in compliance with this and all other covenants . |
Long-Term Debt
Long-Term Debt | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Long-Term Debt [Abstract] | ||
LONG-TERM DEBT | 7. LONG-TERM DEBT Our senior notes are secured by a first priority lien on certain transmission and distribution assets equally and ratably with all of Oncor’s other secured indebtedness. See “Deed of Trust” below for additional information. At September 30, 2018 and December 31, 2017, our long-term debt consisted of the following: September 30, December 31, 2018 2017 Secured: 6.80% Fixed Senior Notes due September 1, 2018 $ - $ 550 2.15% Fixed Senior Notes due June 1, 2019 250 250 5.75% Fixed Senior Notes due September 30, 2020 126 126 4.10% Fixed Senior Notes due June 1, 2022 400 400 7.00% Fixed Debentures due September 1, 2022 800 800 2.95% Fixed Senior Notes due April 1, 2025 350 350 3.70% Fixed Senior Notes due November 15, 2028 350 - 7.00% Fixed Senior Notes due May 1, 2032 500 500 7.25% Fixed Senior Notes due January 15, 2033 350 350 7.50% Fixed Senior Notes due September 1, 2038 300 300 5.25% Fixed Senior Notes due September 30, 2040 475 475 4.55% Fixed Senior Notes due December 1, 2041 400 400 5.30% Fixed Senior Notes due June 1, 2042 500 500 3.75% Fixed Senior Notes due April 1, 2045 550 550 3.80% Fixed Senior Notes due September 30, 2047 325 325 4.10% Fixed Senior Notes due November 15, 2048 450 - Secured long-term debt 6,126 5,876 Unsecured: Term loan credit agreement due no later than March 26, 2019 - 275 Total long-term debt 6,126 6,151 Unamortized discount and debt issuance costs (40) (34) Less amount due currently (250) (550) Long-term debt, less amounts due currently $ 5,836 $ 5,567 Debt-Related Activity in 2018 Debt Repayments Repayments of long-term debt in the nine months ended September 30, 2018 consisted of $275 million aggregate principal amount of the term loan credit agreement due March 26, 2019 and $550 million aggregate principal amount of our 6.80% senior secured notes due September 1, 2018 (2018 Notes). The term loan agreement was repaid in full, and the 2018 Notes were defeased on August 10, 2018. Debt Issuances In August 2018, we issued $350 million aggregate principal amount of 3.70% senior secured notes due November 15, 2028 (the 2028 Notes) and $450 million aggregate principal amount of 4.10% senior secured notes due November 15, 2048 (the 2048 Notes and, together with the 2028 Notes, the New Notes). We used the proceeds (net of the initial purchasers’ discount, fees and expenses) of $791 million from the sale of the New Notes for general corporate purposes, including to pay the amount required for defeasance of our 2018 Notes, to repay the $131 million outstanding under our term loan credit agreement, and to repay notes due under our CP Program. The New Notes are secured by a first priority lien, and are secured equally and ratably with all of our other secured indebtedness. Interest on the New Notes is payable in cash semiannually in arrears on May 15 and November 15 of each year, and the first interest payment is due November 15, 2018. Prior to August 15, 2028, in the case of the 2028 Notes, and May 15, 2048, in the case of the 2048 Notes, we may redeem such Notes at any time, in whole or in part, at a price equal to 100% of their principal amount, plus accrued and unpaid interest and a “make-whole” premium. On and after August 15, 2028, in the case of the 2028 Notes, and May 15, 2048, in the case of the 2048 Notes, we may redeem such New Notes at any time, in whole or in part, at a redemption price equal to 100% of the principal amount of such New Notes, plus accrued and unpaid interest. The New Notes also contain customary events of default, including failure to pay principal or interest when due. The New Notes were issued in a private placement and were not registered under the Securities Act of 1933. We have agreed, subject to certain exceptions, to register with the SEC notes having substantially identical terms as the New Notes (except for provisions relating to the transfer restriction and payment of additional interest) as part of an offer to exchange freely tradable exchange notes for the New Notes. We have agreed to use commercially reasonable efforts to cause the exchange offer to be completed within 315 days after the issue date of the New Notes. If a registration statement for the exchange offer is not declared effective by the SEC within 270 days after the issue date of the New Notes or the exchange offer is not completed within 315 days after the issue date of the New Notes (an exchange default), then the annual interest rate on the 2028 Notes will increase 12.5 basis points per annum and the annual interest rate on the 2048 Notes will increase 15 basis points per annum until the earlier of the expiration of the exchange default or the second anniversary of the issue date of the New Notes. Deed of Trust Our secured indebtedness is secured equally and ratably by a first priority lien on property we acquired or constructed for the transmission and distribution of electricity. The property is mortgaged under the Deed of Trust. The Deed of Trust permits us to secure indebtedness (excluding borrowings under the CP Program and the Credit Facility) with the lien of the Deed of Trust up to the aggregate of (i) the amount of available bond credits, and (ii) 85% of the lower of the fair value or cost of certain property additions that could be certified to the Deed of Trust collateral agent. At September 30, 2018, the amount of available bond credits was $3.588 billion and the amount of future debt we could secure with property additions, subject to those property additions being certified to the Deed of Trust collateral agent, was $2.136 billion. Fair Value of Long-Term Debt At September 30, 2018 and December 31, 2017, the estimated fair value of our long-term debt (including current maturities) totaled $6.731 billion and $7.153 billion, respectively, and the carrying amount totaled $6.086 billion and $6.117 billion, respectively. The fair value is estimated using observable market data, representing Level 2 valuations under accounting standards related to the determination of fair value. | 7. LONG-TERM DEBT Our senior notes are secured by a first priority lien on certain transmission and distribution assets equally and ratably with all of Oncor’s other secured indebtedness. See “Deed of Trust” below for additional information. At December 31, 2017 and 2016, our long-term debt consisted of the following: December 31, 2017 2016 Secured: 5.000% Fixed Senior Notes due September 30, 2017 $ - $ 324 6.800% Fixed Senior Notes due September 1, 2018 550 550 2.150% Fixed Senior Notes due June 1, 2019 250 250 5.750% Fixed Senior Notes due September 30, 2020 126 126 4.100% Fixed Senior Notes due June 1, 2022 400 400 7.000% Fixed Debentures due September 1, 2022 800 800 2.950% Fixed Senior Notes due April 1, 2025 350 350 7.000% Fixed Senior Notes due May 1, 2032 500 500 7.250% Fixed Senior Notes due January 15, 2033 350 350 7.500% Fixed Senior Notes due September 1, 2038 300 300 5.250% Fixed Senior Notes due September 30, 2040 475 475 4.550% Fixed Senior Notes due December 1, 2041 400 400 5.300% Fixed Senior Notes due June 1, 2042 500 500 3.750% Fixed Senior Notes due April 1, 2045 550 550 3.800% Fixed Senior Notes due September 30, 2047 325 - Secured long-term debt 5,876 5,875 Unsecured: Term loan credit agreement due no later than March 26, 2019 275 - Total long-term debt 6,151 5,875 Unamortized discount and debt issuance costs (34) (36) Less amount due currently (550) (324) Long-term debt, less amounts due currently $ 5,567 $ 5,515 Debt-Related Activity in 2017 Debt Repayments Repayments of long-term debt in 2017 consisted of $324 million aggregate principal amount of 5.00% senior secured notes due September 30, 2017 (2017 Notes) that we redeemed on September 29, 2017. Issuance of Senior Secured Notes In September 2017, we issued $325 million aggregate principal amount of 3.80% senior secured notes due September 30, 2047 (2047 Notes). We used the proceeds (net of the initial purchasers’ discount, fees and expenses) of $321 million from the sale of the 2047 Notes for general corporate purposes, including repayment of borrowings under the revolving credit facility and payment of a portion of the redemption price for the 2017 Notes. The 2047 Notes are secured by a first priority lien, and are secured equally and ratably with all of our other secured indebtedness. Interest on the 2047 Notes is payable in cash semiannually on March 30 and September 30 of each year, beginning on March 30, 2018. Prior to March 30, 2047, we may at our option at any time redeem all or part of the 2047 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest and a make-whole premium. On and after March 30, 2047, Oncor may redeem the 2047 Notes at any time, in whole or in part, at a redemption price equal to 100% of the principal amount of such 2047 Notes, plus accrued and unpaid interest. The 2047 Notes also contain customary events of default, including failure to pay principal or interest on the 2047 Notes when due. The 2047 Notes were issued in a private placement and were not registered under the Securities Act. We have agreed, subject to certain exceptions, to register with the SEC notes having substantially identical terms as the 2047 Notes (except for provisions relating to the transfer restriction and payment of additional interest) as part of an offer to exchange freely tradable exchange notes for the 2047 Notes. We have agreed to use commercially reasonable efforts to cause the exchange offer to be completed within 315 days after the issue date of the 2047 Notes. If a registration statement for the exchange offer is not declared effective by the SEC within 270 days after the issue date of the 2047 Notes or the exchange offer is not completed within 315 days after the issue date of the 2047 Notes (an exchange default), then the annual interest rate on the 2047 Notes will increase 50 basis points per annum until the earlier of the expiration of the exchange default or the second anniversary of the issue date of the 2047 Notes. Term Loan Credit Agreement On September 26, 2017, we entered into an unsecured term loan credit agreement in an aggregate principal amount of $275 million. We used the proceeds (net of the fees and expenses) for general corporate purposes, including repayment of borrowings under the revolving credit facility and to pay a portion of the redemption price for the 2017 Notes. The term loan credit agreement has an 18 -month term maturing on March 26, 2019, and contains optional prepayment provisions as well as mandatory prepayment provisions that require prepayment in the event of certain specified debt issuances or certain specified asset dispositions. At December 31, 2017, we had outstanding borrowings of $275 million under the term loan credit agreement bearing interest at a rate per annum of 2.452% . Loans under the term loan credit agreement bear interest at per annum rates equal to, at our option, (i) LIBOR plus 0.90% , or (ii) an alternate base rate (the highest of (1) the prime rate of Wells Fargo Bank, National Association, (2) the federal funds effective rate plus 0.50% , and (3) daily one-month LIBOR plus 1.00% ). The term loan credit agreement contains customary covenants for facilities of this type, restricting, subject to certain exceptions, us and our subsidiaries from, among other things, incurring additional liens, entering into mergers and consolidations, and sales of substantial assets. In addition, the term loan credit agreement requires that we maintain a consolidated senior debt to capitalization ratio of no greater than 0.65 to 1.00 and observe certain customary reporting requirements and other affirmative covenants. At December 31, 2017, we were in compliance with the covenants under our term loan credit agreement. The term loan credit agreement also contains customary events of default for facilities of this type the occurrence of which would allow the lenders to accelerate all outstanding loans and terminate their commitments, including certain changes in control of Oncor that are not permitted transactions under the term loan credit agreement, cross-default provisions in the event Oncor or any of its subsidiaries defaults on indebtedness in a principal amount in excess of $100 million or receives judgments for the payment of money in excess of $50 million that are not discharged within 60 days. Debt-Related Activity in 2016 Debt Repayments Rep ayments of long-term debt in 2016 totaled $41 million, representing the final transition bond principal payment at the scheduled maturity date. Issuance of Senior Secured Notes In August 2016, we completed the sale of $175 million aggregate principal amount of 3.75% senior secured notes maturing in April 2045 (Additional 2045 Notes). The Additional 2045 Notes were an additional issuance of our 3.75% senior secured notes maturing in April 2045, $375 million aggregate principal amount of which were previously issued in March 2015 (2045 Notes). The Additional 2045 Notes were issued as part of the same series as the 2045 Notes. We used the net proceeds of approximately $185 million from the sale of the Additional 2045 Notes to repay borrowings under our revolving credit facility and for general corporate purposes. The Additional 2045 Notes and 2045 Notes are secured by the first priority lien and are secured equally and ratably with all of our other secured indebtedness as discussed below. Interest on the Additional 2045 Notes is payable in cash semiannually in arrears on April 1 and October 1 of each year, beginning on October 1, 2016. We may at our option redeem the Additional 2045 Notes, in whole or in part, at any time, at a price equal to 100% of their principal amount, plus accrued and unpaid interest and, until October 1, 2044 , a make-whole premium. The Additional 2045 Notes also contain customary events of default, including failure to pay principal or interest on the Additional 2045 Notes when due. The Additional 2045 Notes were issued in a private placement. In January 2017, we completed an offering with the holders of the Additional 2045 Notes to exchange their respective Additional 2045 Notes for notes that have terms identical in all material respects to the Additional 2045 Notes (Exchange Notes), except that the Exchange Notes do not contain terms with respect to transfer restrictions, registration rights and payment of additional interest for failure to observe certain obligations in a certain registration rights agreement. The Exchange Notes were registered on a Form S-4, which was declared effective in December 2016. Deed of Trust Our secured indebtedness is secured equally and ratably by a first priority lien on property we acquired or constructed for the transmission and distribution of electricity. The property is mortgaged under the Deed of Trust. The Deed of Trust permits us to secure indebtedness (excluding borrowings under the 2017 Credit Facility and the term loan credit agreement) with the lien of the Deed of Trust up to the aggregate of (i) the amount of available bond credits, and (ii) 85% of the lower of the fair value or cost of certain property additions that could be certified to the Deed of Trust collateral agent. At December 31, 2017, the amount of available bond credits was approximately $3.038 billion and the amount of future debt we could secure with property additions, subject to those property additions being certified to the Deed of Trust collateral agent, was $2.458 billion. Maturities Long-term debt maturities at December 31, 2017, are as follows: Year Amount 2018 $ 550 2019 525 2020 126 2021 - 2022 1,200 Thereafter 3,750 Unamortized discount and debt issuance costs (34) Total $ 6,117 Fair Value of Long-Term Debt At December 31, 2017 and 2016, the estimated fair value of our long-term debt (including current maturities) totaled $7.153 billion and $6.751 billion, respectively, and the carrying amount totaled $6.117 billion and $5.839 billion, respectively. The fair value is estimated using observable market data, representing Level 2 valuations under accounting standards related to the determination of fair value. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor In April 2014, the Debtors commenced the EFH Bankruptcy Proceedings. T he Oncor Ring-Fenced Entities were not parties to the EFH Bankruptcy Proceedings. See Note 2 for further information regarding the resolution of the EFH Bankruptcy Proceedings and the change in control of our indirect majority owner in connection with such proceedings and Note 11 for our related-party transactions involving members of the Texas Holdings Group. Legal/Regulatory Proceedings We are involved in various legal and administrative proceedings in the normal course of business, the ultimate resolution of which, in the opinion of management, should not have a material effect upon our financial position, results of operations or cash flows. See Note 3 in this report and Note 8 to Financial Statements in our 2017 Form 10-K for additional information regarding our legal and regulatory proceedings. | 8. COMMITMENTS AND CONTINGENCIES EFH Bankruptcy Proceedings On the EFH Petition Date, the Debtors commenced the EFH Bankruptcy Proceedings. T he Oncor Ring-Fenced Entities are not parties to the EFH Bankruptcy Proceedings. See Notes 2 and 12 for a discussion of the potential impacts on us as a result of the EFH Bankruptcy Proceedings and our related-party transactions involving members of the Texas Holdings Group, respectively. Leases At December 31, 2017, our future minimum lease payments under our operating leases (with initial or remaining noncancelable lease terms in excess of one year) were as follows: Year Amount 2018 $ 32 2019 21 2020 14 2021 11 2022 10 Thereafter 1 Total future minimum lease payments $ 89 Rent charged to operation and maintenance expense totaled $27 million, $9 million and $ 8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Efficiency Spending We are required to annually invest in programs designed to improve customer electricity demand efficiencies to satisfy ongoing regulatory requirements. The 2018 requirement is $50 million which is recoverable in rates. Legal/Regulatory Proceedings We are involved in various legal and administrative proceedings in the normal course of business, the ultimate resolution of which, in the opinion of management, should not have a material effect upon our financial position, results of operations or cash flows. See Note 3 for additional information regarding contingencies. Labor Contracts At December 31, 2017, approximately 19% of our full time employees were represented by a labor union and covered by a collective bargaining agreement with an expiration date of October 25, 2018 . Environmental Contingencies We must comply with environmental laws and regulations applicable to the handling and disposal of hazardous waste. We are in compliance with all current laws and regulations; however, the impact, if any, of changes to existing regulations or the implementation of new regulations is not determinable. The costs to comply with environmental regulations can be significantly affected by the following external events or conditions: · changes to existing state or federal regulation by governmental authorities having jurisdiction over control of toxic substances and hazardous and solid wastes, and other environmental matters, and · the identification of additional sites requiring clean-up or the filing of other complaints in which we may be asserted to be a potential responsible party. |
Membership Interests
Membership Interests | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Membership Interests [Abstract] | ||
MEMBERSHIP INTERESTS | 9. MEMBERSHIP INTERESTS Cash Distributions Distributions are limited by our required regulatory capital structure to be at or below the assumed debt-to-equity ratio established periodically by the PUCT for ratemaking purposes, which is 57.5% debt to 42.5% equity effective November 27, 2017. At September 30, 2018, $219 million was available for distribution to our members, as our regulatory capitalization ratio was 56.3% debt to 43.7% equity. The PUCT has the authority to determine what types of debt and equity are included in a utility’s debt-to-equity ratio. For purposes of this ratio, debt is calculated as long-term debt including capital leases plus unamortized gains on reacquired debt less unamortized issuance expenses, premiums and losses on reacquired debt. Equity is calculated as membership interests determined in accordance with GAAP, excluding the effects of the acquisition accounting resulting from PUCT Docket No. 34077. In October 2018, our board of directors declared a cash distribution of $180 million, which was paid to our members on November 6, 2018. In July 2018, our board of directors declared a cash distribution of $30 million, which was paid to our members on August 1, 2018. Cash Contributions In November 2018, our members made capital contributions of $140 million. In April 2018, our members made capital contributions of $144 million. Membership Interests The following table presents the changes to membership interests during the nine months ended September 30, 2018 and 2017: Capital Accounts Accumulated Other Comprehensive Income (Loss) Total Membership Interests Balance at December 31, 2017 $ 8,004 $ (101) $ 7,903 Net income 426 - 426 Distributions (30) - (30) Capital contributions 144 - 144 Net effects of cash flow hedges (net of tax) - 2 2 Defined benefit pension plans (net of tax) - 2 2 Balance at September 30, 2018 $ 8,544 $ (97) $ 8,447 Balance at December 31, 2016 $ 7,822 $ (111) $ 7,711 Net income 343 - 343 Distributions (237) - (237) Net effects of cash flow hedges (net of tax) - 1 1 Defined benefit pension plans (net of tax) - 2 2 Balance at September 30, 2017 $ 7,928 $ (108) $ 7,820 Accumulated Other Comprehensive Income (Loss) The following table presents the changes to accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017: Cash Flow Hedges – Interest Rate Swap Defined Benefit Pension and OPEB Plans Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (18) $ (83) $ (101) Defined benefit pension plans (net of tax) - 2 2 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at September 30, 2018 $ (16) $ (81) $ (97) Balance at December 31, 2016 $ (20) $ (91) $ (111) Defined benefit pension plans (net of tax) - 2 2 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 1 - 1 Balance at September 30, 2017 $ (19) $ (89) $ (108) | 9. MEMBERSHIP INTERESTS Cash Distributions Distributions are limited by our required regulatory capital structure to be at or below the assumed debt-to-equity ratio established periodically by the PUCT for ratemaking purposes. The PUCT has the authority to determine what types of debt and equity are included in a utility’s debt-to-equity ratio. For purposes of this ratio, debt is calculated as long-term debt including capital leases plus unamortized gains on reacquired debt less unamortized issuance expenses, premiums and losses on reacquired debt. Equity is calculated as membership interests determined in accordance with GAAP, excluding the effects of acquisition accounting (which included recording the initial goodwill and fair value adjustments and subsequent related impairments and amortization). Our PUCT authorized capital structure is 57.5% debt to 42.5% equity effective November 27, 2017 based on the PUCT order issued in PUCT Docket No. 46957 (see Note 3 for additional information). Our previous PUCT authorized capital structure was 60% debt to 40% equity. At December 31, 2017, our regulatory capitalization ratio was 59.4% debt to 40.6% equity effectively restricting our ability to make cash distributions to our members. The PUCT order requires Oncor to record a regulatory liability until the new authorized regulatory capital structure is met to reflect our actual capitalization prior to achieving the authorized capital structure. Once the authorized capital structure is attained, the regulatory liability will be returned to customers through the capital structure refund mechanism approved in the PUCT docket. Oncor implemented the regulatory liability as of November 27, 2017. On October 25, 2017, our board of directors declared a contingent cash distribution of $32 million to be paid to our members as of October 25, 2017 within one business day after an additional equity contribution is made to Oncor from members totaling approximately $250 million. In the event the additional equity contribution is not made on or before the date of the closing of the Sempra Merger Agreement, no distribution shall be payable. As of February 22, 2018 the distribution had not been made. For more information on the Sempra Merger Agreement, see Note 2. During 2017, our board of directors declared, and we paid, the following cash distributions to our members: Declaration Date Payment Date Amount July 26, 2017 August 1, 2017 $ 65 April 26, 2017 April 27, 2017 $ 86 March 22, 2017 March 24, 2017 $ 86 During 2016, our board of directors declared, and we paid, the following cash distributions to our members: Declaration Date Payment Date Amount October 26, 2016 October 27, 2016 $ 41 July 27, 2016 August 11, 2016 $ 68 April 27, 2016 May 11, 2016 $ 65 February 24, 2016 February 25, 2016 $ 56 Accumulated Other Comprehensive Income (Loss) The following table presents the changes to accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015. Cash Flow Hedges – Interest Rate Swap Defined Benefit Pension and OPEB Plans Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (24) $ (83) $ (107) Defined benefit pension plans (net of tax) - (8) (8) Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2015 $ (22) $ (91) $ (113) Defined benefit pension plans (net of tax) - - - Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2016 $ (20) $ (91) $ (111) Defined benefit pension plans (net of tax) - 8 8 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2017 $ (18) $ (83) $ (101) |
Pension and OPEB Plans
Pension and OPEB Plans | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Pension And OPEB Plans [Abstract] | ||
PENSION AND OPEB PLANS | 10. PENSION AND OPEB PLANS Pension Plans We sponsor the Oncor Retirement Plan and also have liabilities under the Vistra Retirement Plan, both of which are qualified pension plans under Section 401(a) of the Internal Revenue Code of 1986, as amended, and are subject to the provisions of ERISA. Employees do not contribute to either plan. We also have a supplemental pension plan for certain employees whose retirement benefits cannot be fully earned under the qualified retirement plans. See Note 10 to Financial Statements in our 2017 Form 10-K for additional information regarding pension plans. OPEB Plans We currently sponsor the Oncor OPEB Plans. One plan covers our eligible current and future retirees, excluding certain eligible retirees of EFH Corp./Vistra whose employment service was assigned to both Oncor (or a predecessor regulated utility business) and a non-regulated business of EFH Corp./Vistra which are now part of a separate plan discussed below. Effective January 1, 2018, we established a second plan to cover retirees whose employment included service that has been assigned to both Oncor (or a predecessor regulated utility business) and non-regulated businesses of EFH Corp./Vistra. Vistra is solely responsible for its portion of the liability for retiree benefits related to those retirees. As we are not responsible for Vistra’s portion of the plan’s unfunded liability, that amount is not reported on our balance sheet. The establishment of the plan is not expected to have an impact on our financial statements. See Note 10 to Financial Statements in our 2017 Form 10-K for additional information. Pension and OPEB Costs Our net costs related to pension plans and the Oncor OPEB Plans for the three and nine months ended September 30, 2018 and 2017 were comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Components of net allocated pension costs: Service cost $ 7 $ 6 $ 21 $ 18 Interest cost 29 32 89 98 Expected return on assets (29) (28) (89) (86) Amortization of net loss 12 11 36 33 Net pension costs 19 21 57 63 Components of net OPEB costs: Service cost 2 1 6 5 Interest cost 11 12 33 36 Expected return on assets (2) (2) (6) (6) Amortization of prior service cost (8) (5) (21) (15) Amortization of net loss 14 8 41 24 Net OPEB costs 17 14 53 44 Total net pension and OPEB costs 36 35 110 107 Less amounts deferred principally as property or a regulatory asset (17) (25) (52) (76) Net amounts recognized as expense $ 19 $ 10 $ 58 $ 31 The discount rates reflected in net pension and OPEB costs in 2018 are 3.53% , 3.72% and 3.73% for the Oncor Retirement Plan, the Vistra Retirement Plan and the Oncor OPEB Plans, respectively. The expected return on pension and OPEB plan assets reflected in the 2018 cost amounts are 5.13% , 4.78% and 6.20% for the Oncor Retirement Plan, the Vistra Retirement Plan and the Oncor OPEB Plans, respectively. Pension and OPEB Plans Cash Contributions We made cash contributions to the pension plans and Oncor OPEB Plans of $62 million and $31 million, respectively, during the nine months ended September 30, 2018. We expect to make additional cash contributions to the pension plans and Oncor OPEB Plans of $20 million and $4 million, respectively, during the remainder of 2018. Our aggregate pension plans and Oncor OPEB Plans funding is expected to total approximately $480 million and $175 million, respectively, in the 2018 to 2022 period based on the latest actuarial projections. | 10. PENSION AND OPEB PLANS Regulatory Recovery of Pension and OPEB Costs PURA provides for our recovery of pension and OPEB costs applicable to services of our active and retired employees, as well as services of other EFH Corp./Vistra active and retired employees prior to the deregulation and disaggregation of EFH Corp.’s electric utility businesses effective January 1, 2002 (recoverable service). Accordingly, in 2005, we entered into an agreement with a predecessor of EFH Corp. whereby we assumed responsibility for applicable pension and OPEB costs related to those personnel’s recoverable service. We subsequently entered into agreements with EFH Corp. and a Vistra affiliate regarding provision of these benefits. Pursuant to our agreement with the Vistra affiliate, we now sponsor an OPEB plan that provides certain retirement healthcare and life insurance benefits to eligible former Oncor, EFH Corp. and Vistra employees for whom both Oncor and Vistra bear a portion of the benefit responsibility. See “Oncor OPEB Plan” below for more information. We are authorized to establish a regulatory asset or liability for the difference between the amounts of pension and OPEB costs approved in current billing rates and the actual amounts that would otherwise have been recorded as charges or credits to earnings related to recoverable service. Amounts deferred are ultimately subject to regulatory approval. At December 31, 2017 and 2016, we had recorded regulatory assets totaling $1.215 billion and $ 1.199 billion, respectively, related to pension and OPEB costs, including amounts related to deferred expenses as well as amounts related to unfunded liabilities that otherwise would be recorded as other comprehensive income. We have also assumed primary responsibility for pension benefits of a closed group of retired and terminated vested plan participants not related to our regulated utility business (non-recoverable service) in a 2012 transaction. Any retirement costs associated with non-recoverable service is not recoverable through rates. Pension Plans We sponsor the Oncor Retirement Plan and also have liabilities under the Vistra Retirement Plan (formerly EFH Retirement Plan), both of which are qualified pension plans under Section 401(a) of the Code, and are subject to the provisions of ERISA. Employees do not contribute to either plan. These pension plans provide benefits to participants under one of two formulas: (i) a Cash Balance Formula under which participants earn monthly contribution credits based on their compensation and a combination of their age and years of service, plus monthly interest credits or (ii) a Traditional Retirement Plan Formula based on years of service and the average earnings of the three years of highest earnings. The interest component of the Cash Balance Formula is variable and is determined using the yield on 30-year Treasury bonds. Under the Cash Balance Formula, future increases in earnings will not apply to prior service costs. All eligible employees hired after January 1, 2001 participate under the Cash Balance Formula. Certain employees, who, prior to January 1, 2002, participated under the Traditional Retirement Plan Formula, continue their participation under that formula. It is the sponsors’ policy to fund the plans on a current basis to the extent required under existing federal tax and ERISA regulations. We also have the Supplemental Retirement Plan for certain employees whose retirement benefits cannot be fully earned under the qualified retirement plan. Supplemental Retirement Plan amounts are included in the reported pension amounts below. Oncor OPEB Plan Oncor’s OPEB Plan covers our eligible current and future retirees. Pursuant to our agreement with a Vistra affiliate, we sponsor an OPEB plan that covers certain eligible retirees of Oncor, EFH Corp./Vistra and their affiliates whose employment service was assigned to both Oncor (or a predecessor regulated electric business) and a non-regulated business of EFH Corp. Vistra is solely responsible for its portion of the liability for retiree benefits related to those retirees. As we are not responsible for Vistra’s portion of the Oncor OPEB Plan’s unfunded liability totaling $111 million as of December 31, 2017, that amount is not reported on our balance sheet. OPEB plan contributions are generally required to be made at least annually based on OPEB expense included in rates. Contributions are placed in an irrevocable external trust fund dedicated to the payment of OPEB expenses. For employees retiring on or after January 1, 2002, the retiree contributions required for such coverage vary based on a formula depending on the retiree’s age and years of service. Pension and OPEB Costs Recognized as Expense Pension and OPEB amounts provided herein include amounts related only to our portion of the various plans based on actuarial computations and reflect our employee and retiree demographics as described above. Our net costs related to pension and OPEB plans for the years ended December 31, 2017, 2016 and 2015 were comprised of the following: Year Ended December 31, 2017 2016 2015 Pension costs $ 85 $ 76 $ 104 OPEB costs 58 62 53 Total benefit costs 143 138 157 Less amounts recognized principally as property or a regulatory asset (98) (100) (113) Net amounts recognized as expense $ 45 $ 38 $ 44 The calculated value method is used to determine the market-related value of the assets held in the trust for purposes of calculating our pension costs. Realized and unrealized gains or losses in the market-related value of assets are included over a rolling four -year period. Each year, 25% of such gains and losses for the current year and for each of the preceding three years is included in the market-related value. Each year, the market-related value of assets is increased for contributions to the plan and investment income and is decreased for benefit payments and expenses for that year. The fair value method is used to determine the market-related value of the assets held in the trust for purposes of calculating OPEB cost. Detailed Information Regarding Pension and OPEB Benefits The following pension and OPEB information is based on December 31, 2017, 2016 and 2015 measurement dates: Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Assumptions Used to Determine Net Periodic Pension and OPEB Costs: Discount rate 4.05% 4.30% 3.96% 4.35% 4.60% 4.23% Expected return on plan assets 5.17% 5.54% 5.26% 6.10% 6.30% 6.65% Rate of compensation increase 3.33% 3.29% 3.29% - - - Components of Net Pension and OPEB Costs: Service cost $ 24 $ 23 $ 25 $ 7 $ 7 $ 7 Interest cost 131 134 131 47 49 43 Expected return on assets (115) (122) (115) (8) (9) (10) Amortization of prior service cost (credit) - - - (20) (20) (20) Amortization of net loss 45 41 63 32 35 33 Net periodic pension and OPEB costs $ 85 $ 76 $ 104 $ 58 $ 62 $ 53 Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: Net loss (gain) $ (11) $ 41 $ 37 $ 139 $ 10 $ 39 Amortization of net loss (45) (41) (63) (32) (35) (33) Plan amendments - - - (78) - - Amortization of prior service (cost) credit - - - 20 20 20 Total recognized as regulatory assets or other comprehensive income (56) - (26) 49 (5) 26 Total recognized in net periodic pension and OPEB costs and as regulatory assets or other comprehensive income $ 29 $ 76 $ 78 $ 107 $ 57 $ 79 Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Assumptions Used to Determine Benefit Obligations at Period End: Discount rate 3.54% 4.05% 4.30% 3.73% 4.35% 4.60% Rate of compensation increase 4.46% 3.33% 3.29% - - - Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 3,307 $ 3,201 $ 1,116 $ 1,088 Service cost 24 23 7 7 Interest cost 131 134 47 49 Participant contributions - - 19 17 Assumption of liabilities - - - 7 Plan amendments - - (78) - Actuarial (gain) loss 201 106 154 10 Benefits paid (163) (157) (67) (62) Projected benefit obligation at end of year $ 3,500 $ 3,307 $ 1,198 $ 1,116 Accumulated benefit obligation at end of year $ 3,387 $ 3,213 $ - $ - Change in Plan Assets: Fair value of assets at beginning of year $ 2,287 $ 2,252 $ 143 $ 141 Actual return (loss) on assets 327 188 23 9 Employer contributions 149 4 31 31 Assets related to assumed liabilities - - - 7 Participant contributions - - 19 17 Benefits paid (163) (157) (67) (62) Fair value of assets at end of year $ 2,600 $ 2,287 $ 149 $ 143 Funded Status: Projected benefit obligation at end of year $ (3,500) $ (3,307) $ (1,198) $ (1,116) Fair value of assets at end of year 2,600 2,287 149 143 Funded status at end of year $ (900) $ (1,020) $ (1,049) $ (973) Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Amounts Recognized in the Balance Sheet Consist of: Liabilities: Other current liabilities $ (4) $ (4) $ (12) $ - Other noncurrent liabilities (896) (1,016) (1,037) (973) Net liability recognized $ (900) $ (1,020) $ (1,049) $ (973) Regulatory assets: Net loss $ 538 $ 583 $ 402 $ 296 Prior service cost (credit) - - (86) (30) Net regulatory asset recognized $ 538 $ 583 $ 316 $ 266 Accumulated other comprehensive net loss $ 124 $ 136 $ 3 $ 4 The following tables provide information regarding the assumed health care cost trend rates. Year Ended December 31, 2017 2016 Assumed Health Care Cost Trend Rates – Not Medicare Eligible: Health care cost trend rate assumed for next year (a) 8.00% 5.80% Rate to which the cost trend is expected to decline (the ultimate trend rate) 4.50% 5.00% Year that the rate reaches the ultimate trend rate 2026 2024 Assumed Health Care Cost Trend Rates – Medicare Eligible: Health care cost trend rate assumed for next year (b) 9.40% 5.70% Rate to which the cost trend is expected to decline (the ultimate trend rate) 4.50% 5.00% Year that the rate reaches the ultimate trend rate 2026 2024 (a) 2017 trend rates include weighting for prescription drugs. Comparable rate for 2016 is 6.80%. (b) 2017 trend rates include weighting for prescription drugs. Comparable rate for 2016 is 8.40%. 1-Percentage Point Increase 1-Percentage Point Decrease Sensitivity Analysis of Assumed Health Care Cost Trend Rates: Effect on accumulated postretirement obligation $ 158 $ (131) Effect on postretirement benefits cost 8 (6) The following table provides information regarding pension plans with projected benefit obligations (PBO) and accumulated benefit obligations (ABO) in excess of the fair value of plan assets. At December 31, 2017 2016 Pension Plan with PBO and ABO in Excess of Plan Assets: Projected benefit obligations $ 3,316 $ 3,137 Accumulated benefit obligations 3,207 3,051 Plan assets 2,409 2,112 Pension and OPEB Plans Investment Strategy and Asset Allocations Our investment objective for the retirement plans is to invest in a suitable mix of assets to meet the future benefit obligations at an acceptable level of risk, while minimizing the volatility of contributions. Equity securities are held to achieve returns in excess of passive indexes by participating in a wide range of investment opportunities. International equity, real estate securities and credit strategies (high yield bonds, emerging market debt and bank loans) are used to further diversify the equity portfolio. International equity securities may include investments in both developed and emerging international markets. Fixed income securities include primarily corporate bonds from a diversified range of companies, U.S. Treasuries and agency securities and money market instruments. Our investment strategy for fixed income investments is to maintain a high grade portfolio of securities, which assists us in managing the volatility and magnitude of plan contributions and expense while maintaining sufficient cash and short-term investments to pay near-term benefits and expenses. The Oncor Retirement Plan’s investments are managed in two pools: one pool associated with the recoverable service portion of plan obligations related to Oncor’s regulated utility business, and a second pool associated with the non-recoverable service portion of plan obligations not related to Oncor’s regulated utility business. Each pool is invested in a broadly diversified portfolio as shown below. The second pool represents about 31% of total investments at December 31, 2017. The target asset allocation ranges of the pension plans investments by asset category are as follows: Target Allocation Ranges Asset Category Recoverable Non-recoverable International equities 13% - 21% 5% - 9% U.S. equities 16% - 24% 6% - 10% Real estate 3% - 6% - Credit strategies 5% - 9% 4% - 6% Fixed income 45% - 57% 76% - 84% Our investment objective for the OPEB plan primarily follows the objectives of the pension plans discussed above, while maintaining sufficient cash and short-term investments to pay near-term benefits and expenses. The actual amounts at December 31, 2017 provided below are consistent with the asset allocation targets. Fair Value Measurement of Pension Plans Assets At December 31, 2017 and 2016, pension plans assets measured at fair value on a recurring basis consisted of the following: At December 31, 2017 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ - $ 11 $ - $ 11 Equity securities: U.S. 235 2 - 237 International 271 - - 271 Fixed income securities: Corporate bonds (a) - 1,081 - 1,081 U.S. Treasuries - 251 - 251 Other (b) - 44 - 44 Real estate - - 3 3 Total assets in the fair value hierarchy $ 506 $ 1,389 $ 3 1,898 Total assets measured at net asset value (c) 702 Total fair value of plan assets $ 2,600 At December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ - $ 14 $ - $ 14 Equity securities: U.S. 193 3 - 196 International 225 - - 225 Fixed income securities: Corporate bonds (a) - 1,089 - 1,089 U.S. Treasuries - 223 - 223 Other (b) - 40 - 40 Real estate - - 5 5 Total assets in the fair value hierarchy $ 418 $ 1,369 $ 5 $ 1,792 Total assets measured at net asset value (c) 495 Total fair value of plan assets $ 2,287 _____________ (a) Substantially all corporate bonds are rated investment grade by a major ratings agency such as Moody’s. (b) Other consists primarily of municipal bonds, emerging market debt, bank loans and fixed income derivative instruments. (c) Fair value was measured using the net asset value (NAV) per share as a practical expedient as the investments did not have a readily determinable fair value and are not required to be classified in the fair value hierarchy. The NAV fair value amounts presented here are intended to permit a reconciliation to the total fair value of plan assets. The decrease in the fair value of the Level 3 assets was due to the sale of a portion of the investments. Fair Value Measurement of OPEB Plan Assets At December 31, 2017 and 2016, OPEB plan assets measured at fair value on a recurring basis consisted of the following: At December 31, 2017 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ 1 $ 1 $ - $ 2 Equity securities: U.S. 35 - - 35 International 33 - - 33 Fixed income securities: Corporate bonds (a) - 30 - 30 U.S. Treasuries - 3 - 3 Other (b) 28 1 - 29 Total assets in the fair value hierarchy $ 97 $ 35 $ - 132 Total assets measured at net asset value (c) 17 Total fair value of plan assets $ 149 At December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ 2 $ - $ - $ 2 Equity securities: U.S. 41 - - 41 International 28 - - 28 Fixed income securities: Corporate bonds (a) - 28 - 28 U.S. Treasuries - 2 - 2 Other (b) 28 - - 28 Total assets in the fair value hierarchy $ 99 $ 30 $ - 129 Total assets measured at net asset value (c) 14 Total fair value of plan assets $ 143 _____________ (a) Substantially all corporate bonds are rated investment grade by a major ratings agency such as Moody’s. (b) Other consists primarily of diversified bond mutual funds. (c) Fair value was measured using the net asset value (NAV) per share as a practical expedient as the investments did not have a readily determinable fair value and are not required to be classified in the fair value hierarchy. The NAV fair value amounts presented here are intended to permit a reconciliation to the total fair value of plan assets. Expected Long-Term Rate of Return on Assets Assumption The retirement plans’ strategic asset allocation is determined in conjunction with the plans’ advisors and utilizes a comprehensive Asset-Liability modeling approach to evaluate potential long-term outcomes of various investment strategies. The modeling incorporates long-term rate of return assumptions for each asset class based on historical and future expected asset class returns, current market conditions, rate of inflation, current prospects for economic growth, and taking into account the diversification benefits of investing in multiple asset classes and potential benefits of employing active investment management. Pension Plans OPEB Plan Asset Class Expected Long-Term Rate of Return Asset Class Expected Long-Term Rate of Return International equity securities 7.33% 401(h) accounts 6.51% U.S. equity securities 6.40% Life insurance VEBA 6.13% Real estate 5.60% Union VEBA 6.13% Credit strategies 5.03% Non-union VEBA 2.60% Fixed income securities 4.20% Weighted average 6.20% Weighted average (a) 5.48% _____________ (a) The 2018 expected long-term rate of return for the nonregulated portion of the Oncor Retirement Plan is 4.36% and 4.78% for Oncor's portion of the Vistra Retirement Plan. Significant Concentrations of Risk The plans’ investments are exposed to risks such as interest rate, capital market and credit risks. We seek to optimize return on investment consistent with levels of liquidity and investment risk which are prudent and reasonable, given prevailing capital market conditions and other factors specific to participating employers. While we recognize the importance of return, investments will be diversified in order to minimize the risk of large losses unless, under the circumstances, it is clearly prudent not to do so. There are also various restrictions and guidelines in place including limitations on types of investments allowed and portfolio weightings for certain investment securities to assist in the mitigation of the risk of large losses. Assumed Discount Rate For the Oncor retirement plans at December 31, 2017, we selected the assumed discount rate using the Aon Hewitt AA-AAA Bond Universe yield curve, which is based on corporate bond yields and at December 31, 2017 consisted of 1,029 corporate bonds with an average rating of AA and AAA using Moody’s, S&P and Fitch ratings. For the Oncor OPEB Plan at December 31, 2017, we selected the assumed discount rate using the Aon Hewitt AA Above Median yield curve, which is based on corporate bond yields and at December 31, 2017 consisted of 391 corporate bonds with an average rating of AA using Moody’s, S&P and Fitch ratings. Amortization in 2018 In 2018, amortization of the net actuarial loss for the defined benefit pension plans from regulatory assets and other comprehensive income into net periodic benefit cost is expected to be $45 million and $4 million, respectively. No amortization of prior service credit is expected in 2018 for the defined benefit pension plans. Amortization of the net actuarial loss for the OPEB plan from regulatory assets and other comprehensive income into net periodic benefit cost is expected to be $56 million and $1 million, respectively. Amortization of prior service credit for the OPEB plan from regulatory assets and other comprehensive income into net periodic benefit cost is expected to be $30 million and zero , respectively. Pension and OPEB Plans Cash Contributions Our contributions to the benefit plans were as follows: Year Ended December 31, 2017 2016 2015 Pension plans contributions $ 149 $ 4 $ 54 OPEB plan contributions 31 31 25 Total contributions $ 180 $ 35 $ 79 Our funding for the pension plans and the Oncor OPEB Plan is expected to total $82 million and $35 million, respectively in 2018 and approximately $556 million and $178 million, respectively, in the 2018 to 2022 period. Future Benefit Payments Estimated future benefit payments to participants are as follows: 2018 2019 2020 2021 2022 2023-27 Pension plans $ 186 $ 187 $ 192 $ 197 $ 200 $ 1,050 OPEB plan $ 56 $ 59 $ 62 $ 65 $ 68 $ 351 Thrift Plan Our employees are eligible to participate in a qualified savings plan, a participant-directed defined contribution plan intended to qualify under Section 401(a) of the Code, and is subject to the provisions of ERISA. Under the plan, employees may contribute, through pre-tax salary deferrals and/or after-tax applicable payroll deductions, a portion of their regular salary or wages as permitted under law. Employer matching contributions are made in an amount equal to 100% of the first 6% of employee contributions for employees who are covered under the Cash Balance Formula of the Oncor Retirement Plan, and 75% of the first 6% of employee contributions for employees who are covered under the Traditional Retirement Plan Formula of the Oncor Retirement Plan. Employer matching contributions are made in cash and may be allocated by participants to any of the plan's investment options. Our contributions to the Oncor Thrift Plan totaled $17 million, $15 million and $14 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related-Party Transactions [Abstract] | ||
RELATED-PARTY TRANSACTIONS | 11. RELATED-PARTY TRANSACTIONS The following represent our significant related-party transactions at September 30, 2018. As a result of the Sempra Acquisition, Sempra became a related party and the Sponsor Group ceased to be a related party as of March 9, 2018. See Note 2 for information regarding the Sempra Acquisition. · We are not a member of another entity’s consolidated tax group, but our owners’ federal income tax returns include their portion of our results. Under the terms of a tax sharing agreement among us, Oncor Holdings, Texas Transmission and STH (as successor to EFH Corp.), we are generally obligated to make payments to our owners, pro rata in accordance with their respective membership interests, in an aggregate amount that is substantially equal to the amount of federal income taxes that we would have been required to pay if we were filing our own corporate income tax return. STH will file a combined Texas Margin tax return which includes our results and our share of Texas margin tax payments, which are accounted for as income taxes and calculated as if we were filing our own return. See discussion in Note 1 to Financial Statements in our 2017 Form 10-K under “Income Taxes.” Under the “in lieu of” tax concept, all in lieu of tax assets and tax liabilities represent amounts that will eventually be settled with our members. In the event such amounts are not paid under the tax sharing agreement, it is probable that this regulatory liability will continue to be included in Oncor’s rate setting processes. Amounts payable to (receivable from) members related to income taxes under the tax sharing agreement and reported on our balance sheet consisted of the following: At September 30, 2018 At December 31, 2017 STH Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes payable (receivable) $ 13 $ 3 $ 16 $ (21) $ (5) $ (26) Texas margin taxes payable 16 - 16 21 - 21 Net payable (receivable) $ 29 $ 3 $ 32 $ - $ (5) $ (5) Cash payments made to (received from) members related to income taxes consisted of the following: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 STH EFH Corp. Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes $ 41 $ (19) $ 6 $ 28 $ (102) $ (12) $ (114) Texas margin taxes 21 - - 21 20 - 20 Total payments (receipts) $ 62 $ (19) $ 6 $ 49 $ (82) $ (12) $ (94) · Related parties of the Sponsor Group have (1) sold, acquired or participated in the offerings of our debt or debt securities in open market transactions or through loan syndications, and (2) performed various financial advisory, dealer, commercial banking and investment banking services for us and certain of our affiliates for which they have received or will receive customary fees and expenses. As of March 8, 2018, approximately 16% of the equity in an existing vendor of the company was owned by a member of the Sponsor Group. During 2018 and 2017, this vendor performed transmission and distribution system construction and maintenance services for us. Cash payments were made for such services to this vendor and/or its subsidiaries totaling $35 million dollars for the year-to-date period ended March 8, 2018, of which approximately $33 million was capitalized and $2 million was recorded as an operation and maintenance expense. See Note 9 for information regarding distributions to and capital contributions from members. | 12. RELATED-PARTY TRANSACTIONS The following represent our significant related-party transactions and related matters. See Note 2 for additional information regarding related-party contingencies resulting from the EFH Bankruptcy Proceedings and information regarding the Vistra Spin-Off. As a result of the Vistra Spin-Off, Vistra and its subsidiaries, including Luminant and TXU Energy, ceased to be related parties as of October 3, 2016. · We recorded revenue from TCEH, principally for electricity delivery fees, which totaled $715 million for the period January 1, 2016 through October 2, 2016 and $955 million for the year ended December 31, 2015. The fees are based on rates regulated by the PUCT that apply to all REPs. · EFH Corp. subsidiaries charged us for certain administrative services at cost. Our payments to EFH Corp. subsidiaries for administrative services, which are primarily reported in operation and maintenance expenses, totaled $1 million and $17 million for the years ended December 31, 2016 and 2015, respectively. We also charge each other for shared facilities at cost. Our payments to EFH Corp. subsidiaries for shared facilities totaled $3 million and $4 million for the years ended December 31, 2016 and 2015, respectively. Payments we received from EFH Corp. subsidiaries related to shared facilities, totaled $1 million and $2 million for the years ended December 31, 2016 and 2015, respectively. · We are not a member of EFH Corp.’s consolidated tax group, but EFH Corp.’s consolidated federal income tax return includes EFH Corp.’s portion of our results due to EFH Corp.’s equity ownership in us. Under the terms of a tax sharing agreement among us, Oncor Holdings, Texas Transmission, Investment LLC and EFH Corp., we are generally obligated to make payments to Texas Transmission, Investment LLC and EFH Corp., pro rata in accordance with their respective membership interests, in an aggregate amount that is substantially equal to the amount of federal income taxes that we would have been required to pay if we were filing our own corporate income tax return. EFH Corp. also includes our results in its consolidated Texas margin tax payments, which we account for as income taxes and calculate as if we were filing our own return. See discussion in Note 1 under “Provision in Lieu of Income Taxes.” Under the “in lieu of” tax concept, all in lieu of tax assets and tax liabilities represent amounts that will eventually be settled with our members. In the event such amounts are not paid under the tax sharing agreement, it is probable that this regulatory liability will continue to be included in Oncor’s rate setting processes. Amounts payable to (receivable from) members related to income taxes under the agreement and reported on our balance sheet consisted of the following: At December 31, 2017 At December 31, 2016 EFH Corp. Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes receivable $ (21) $ (5) $ (26) $ (62) $ (18) $ (80) Texas margin taxes payable 21 - 21 20 - 20 Net payable (receivable) $ - $ (5) $ (5) $ (42) $ (18) $ (60) Cash payments made to (received from) members related to income taxes consisted of the following: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 EFH Corp. Texas Transm. Total EFH Corp. Texas Transm. Total EFH Corp. Texas Transm. Total Federal income taxes $ (102) $ (12) $ (114) $ - $ - $ - $ 108 $ 27 $ 135 Texas margin taxes 20 - 20 20 - 20 24 - 24 Total payments (receipts) $ (82) $ (12) $ (94) $ 20 $ - $ 20 $ 132 $ 27 $ 159 · Related parties of the Sponsor Group have (1) sold, acquired or participated in the offerings of our debt or debt securities in open market transactions or through loan syndications, and (2) performed various financial advisory, dealer, commercial banking and investment banking services for us and certain of our affiliates for which they have received or will receive customary fees and expenses, and may from time to time in the future participate in any of the items in (1) and (2) above. Also, as of December 31, 2017, approximately 16% of the equity in an existing vendor of the company was owned by a member of the Sponsor Group. During 2017 and 2016, this vendor performed transmission and distribution system construction and maintenance services for us. Cash payments were made for such services to this vendor and/or its subsidiaries totaling $219 million for 2017, of which approximately $210 million was capitalized and $9 million recorded as an operation and maintenance expense, and $188 million for 2016, of which approximately $180 million was capitalized and $8 million recorded as an operation and maintenance expense. At December 31, 2017 and 2016, we had outstanding trade payables to this vendor of $7 million and $5 million, respectively. See Notes 1, 4, 9 and 10 for information regarding the tax sharing agreement, distributions to members and our participation in the Vistra Retirement Plan. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 11. STOCK-BASED COMPENSATION We currently do not offer stock-based compensation to our employees or directors. In 2008, we established the SARs Plan under which certain of our executive officers and key employees were granted stock appreciation rights payable in cash, or in some circumstances, Oncor membership interests. In February 2009, we established the Oncor Electric Delivery Company LLC Director Stock Appreciation Rights Plan (the Director SARs Plan) under which certain non-employee members of our board of directors and other persons having a relationship with us were granted SARs payable in cash, or in some circumstances, Oncor membership interests. In November 2012, we accepted the early exercise of all outstanding SARs (both vested and unvested) issued to date pursuant to both SARs Plans. As part of the 2012 early exercise of SARs we began accruing interest on dividends declared with respect to the SARs. Under both SARs plans, dividends that were paid in respect of Oncor membership interests while the SARs were outstanding were credited to the SARs holder’s account as if the SARs were units, payable upon the earliest to occur of death, disability, separation from service, unforeseeable emergency, a change in control, or the occurrence of an event triggering SAR exercisability pursuant to Section 5(c)(ii) of the SARs Plan . As a result, at December 31, 2017, we have recorded a liability of approximately $11 million relating to SARS dividend accruals. For accounting purposes, the liability is discounted based on an employee’s or director’s expected retirement date . We recognized approximately $1 million in accretion and interest with respect to such dividends in each of the years 2017, 2016 and 2015. |
Supplementary Financial Informa
Supplementary Financial Information | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Supplementary Financial Information [Abstract] | ||
SUPPLEMENTARY FINANCIAL INFORMATION | 12. SUPPLEMENTARY FINANCIAL INFORMATION Other Income and (Deductions) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Professional fees $ - $ (4) (4) (12) Sempra Acquisition related costs - - (16) - Recoverable Pension and OPEB - non-service costs (a) (13) (8) (40) (23) Non-recoverable pension and OPEB (Note 10) (1) (1) (4) (4) Other, including interest income 1 - 1 4 Total other income and (deductions) - net $ (13) $ (13) $ (63) $ (35) ____________ (a) The prior periods have been adjusted to present non-service costs as a non-operating cost pursuant to ASU 2017-07. See Note 1 for additional information. Interest Expense and Related Charges Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest $ 90 $ 89 $ 268 $ 263 Amortization of debt issuance costs and discounts 2 1 5 2 Less allowance for funds used during construction – capitalized interest portion (3) (3) (9) (8) Total interest expense and related charges $ 89 $ 87 $ 264 $ 257 Trade Accounts and Other Receivables Trade accounts and other receivables reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Gross trade accounts and other receivables $ 691 $ 638 Allowance for uncollectible accounts (3) (3) Trade accounts receivable – net $ 688 $ 635 At September 30, 2018, REP subsidiaries of our two largest counterparties represented approximately 16% and 13% of the trade accounts receivable balance and at December 31, 2017, represented approximately 12% and 10% of the trade accounts receivable balance. Under a PUCT rule relating to the Certification of Retail Electric Providers, write-offs of uncollectible amounts owed by nonaffiliated REPs are recoverable as a regulatory asset. Investments and Other Property Investments and other property reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Assets related to employee benefit plans, including employee savings programs $ 111 $ 111 Land and other investments 10 2 Total investments and other property $ 121 $ 113 Property, Plant and Equipment Property, plant and equipment reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Total assets in service $ 22,593 $ 21,717 Less accumulated depreciation and amortization 7,497 7,255 Net of accumulated depreciation and amortization 15,096 14,462 Construction work in progress 671 402 Held for future use 15 15 Property, plant and equipment – net $ 15,782 $ 14,879 Intangible Assets Intangible assets (other than goodwill) reported on our balance sheet as part of property, plant and equipment consisted of the following: At September 30, 2018 At December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Identifiable intangible assets subject to amortization: Land easements $ 456 $ 99 $ 357 $ 453 $ 96 $ 357 Capitalized software 757 375 382 679 339 340 Total $ 1,213 $ 474 $ 739 $ 1,132 $ 435 $ 697 A ggregate amortization expense for intangible assets totaled $13 million and $15 million for the three months ended September 30, 2018 and 2017, respectively, and $39 million and $44 million for the nine months ended September 30, 2018 and 2017, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows: Year Amortization Expense 2018 $ 50 2019 47 2020 45 2021 45 2022 45 At both September 30, 2018 and December 31, 2017, goodwill totaling $ 4.1 billion was reported on our balance sheet. None of this goodwill is being deducted for tax purposes. Employee Benefit Obligations and Other Employee benefit obligations and other reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Retirement plans and other employee benefits $ 1,973 $ 2,035 Investment tax credits 8 10 Other 65 57 Total employee benefit obligations and other $ 2,046 $ 2,102 Supplemental Cash Flow Information Nine Months Ended September 30, 2018 2017 Cash payments (receipts) related to: Interest $ 243 $ 256 Less capitalized interest (9) (8) Interest payments (net of amounts capitalized) $ 234 $ 248 Amount in lieu of income taxes (a): Federal $ 28 $ (114) State 21 20 Total payments (receipts) in lieu of income taxes $ 49 $ (94) Noncash construction expenditures (b) $ 136 $ 103 ____________ (a) See Note 11 for income tax related detail. (b) Represents end-of-period accruals. | 13. SUPPLEMENTARY FINANCIAL INFORMATION Variable Interest Entities Through December 29, 2016, we were the primary beneficiary and consolidated a former wholly-owned VIE, Bondco, which was organized for the limited purpose of issuing specific transition bonds and purchasing and owning transition property acquired from us that was pledged as collateral to secure the bonds. We acted as the servicer for this entity to collect transition charges authorized by the PUCT. These funds were remitted to the trustee and used for interest and principal payments on the transition bonds and related costs. Bondco was dissolved effective December 29, 2016. Bondco had issued an aggregate $1.3 billion principal amount of transition bonds during 2003 and 2004. The 2003 Series transition bonds matured and were paid in full in 2015 and the 2004 Series transition bonds matured and were paid in full in May 2016. We did not provide any financial support to Bondco during the year ended December 31, 2016. Major Customers Revenues from subsidiaries of Vistra (formerly subsidiaries of TCEH) represented 22% , 23 % and 25 % of our total operating revenues for the years ended December 31, 2017, 2016 and 2015, respectively. Revenues from REP subsidiaries of another nonaffiliated entity, collectively represented 18% , 17% and 17% of total operating revenues for the years ended December 31, 2017, 2016 and 2015, respectively. No other customer represented 10 % or more of our total operating revenues. Other Income and Deductions Year Ended December 31, 2017 2016 2015 Accretion of fair value adjustment (discount) to regulatory assets due to acquisition accounting $ - $ 1 $ 5 Professional fees (15) (15) (19) Non-recoverable pension and OPEB (Note 9) (5) (2) (9) Interest income 6 2 - Other (1) (1) 1 Total other income and (deductions) - net $ (15) $ (15) $ (22) Interest Expense and Related Charges Year Ended December 31, 2017 2016 2015 Interest $ 351 $ 341 $ 335 Amortization of debt issuance costs and discounts 3 3 3 Less allowance for funds used during construction – capitalized interest portion (12) (8) (5) Total interest expense and related charges $ 342 $ 336 $ 333 Trade Accounts and Other Receivables Trade accounts and other receivables reported on our balance sheet consisted of the following: At December 31, 2017 2016 Gross trade accounts and other receivables $ 638 $ 548 Allowance for uncollectible accounts (3) (3) Trade accounts receivable – net $ 635 $ 545 At December 31, 2017, REP subsidiaries of two of our largest counterparties collectively represented approximately 12% and 10% of the trade accounts receivable balance and at December 31, 2016, represented approximately 15% and 12% of the trade accounts receivable balance. Under a PUCT rule relating to the Certification of Retail Electric Providers, write-offs of uncollectible amounts owed by nonaffiliated REPs are deferred as a regulatory asset. Investments and Other Property Investments and other property reported on our balance sheet consist of the following: At December 31, 2017 2016 Assets related to employee benefit plans, including employee savings programs $ 111 $ 98 Land 2 2 Total investments and other property $ 113 $ 100 The majority of these assets represent cash surrender values of life insurance policies that are purchased to fund liabilities under deferred compensation plans. At December 31, 2017 and 2016, the face amount of these policies totaled $162 million and $153 million, respectively, and the net cash surrender values (determined using a Level 2 valuation technique) totaled $84 million and $76 million for the years ended December 31, 2017 and 2016, respectively. Changes in cash surrender value are netted against premiums paid. Other investment assets held to satisfy deferred compensation liabilities are recorded at market value. Property, Plant and Equipment Property, plant and equipment reported on our balance sheet consisted of the following: Composite Depreciation Rate/ At December 31, Avg. Life at December 31, 2017 2017 2016 Assets in service: Distribution 2.9% / 34.3 years $ 12,467 $ 11,369 Transmission 2.9% / 34.7 years 7,870 7,734 Other assets 7.1% / 14.1 years 1,380 1,131 Total 21,717 20,234 Less accumulated depreciation 7,255 6,836 Net of accumulated depreciation 14,462 13,398 Construction work in progress 402 416 Held for future use 15 15 Property, plant and equipment – net $ 14,879 $ 13,829 Depreciation expense as a percent of average depreciable property approximated 3.4% , 3.5% and 3.6% for the years ended December 31, 2017, 2016 and 2015, respectively. Intangible Assets Intangible assets (other than goodwill) reported on our balance sheet as part of property, plant and equipment consisted of the following: At December 31, 2017 At December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Identifiable intangible assets subject to amortization: Land easements $ 453 $ 96 $ 357 $ 491 $ 94 $ 397 Capitalized software 679 339 340 470 326 144 Total $ 1,132 $ 435 $ 697 $ 961 $ 420 $ 541 A ggregate amortization expense for intangible assets totaled $57 million, $61 million and $64 million for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, the weighted average remaining useful lives of capitalized land easements and software were 82 years and 8 years, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows: Year Amortization Expense 2018 $ 47 2019 44 2020 43 2021 43 2022 43 At both December 31, 2017 and 2016, goodwill totaling $ 4.1 billion was reported on our balance sheet. None of this goodwill is being deducted for tax purposes. See Note 1 regarding goodwill impairment assessment and testing. Employee Benefit Obligations and Other Employee benefit obligations and other reported on our balance sheet consisted of the following: At December 31, 2017 2016 Retirement plans and other employee benefits $ 2,035 $ 2,092 Uncertain tax positions (including accrued interest) - 3 Investment tax credits 10 12 Other 57 61 Total employee benefit obligations and other $ 2,102 $ 2,168 Supplemental Cash Flow Information Year Ended December 31, 2017 2016 2015 Cash payments related to: Interest $ 345 $ 336 $ 346 Less capitalized interest (12) (8) (5) Interest payments (net of amounts capitalized) $ 333 $ 328 $ 341 Amount in lieu of income taxes: Federal $ (114) $ - $ 135 State 20 20 43 Total payments (refunds) in lieu of income taxes $ (94) $ 20 $ 178 Noncash Sharyland Asset Exchange costs $ 383 $ - $ - Noncash construction expenditures (a) $ 129 $ 122 $ 56 ______________ (a) Represents end-of-period accruals. Quarterly Information (unaudited) Results of operations by quarter for the years ended December 31, 2017 and 2016 are summarized below. In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair statement of such amounts have been made. Quarterly results are not necessarily indicative of a full year’s operations because of seasonal and other factors. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 935 $ 964 $ 1,068 $ 991 Operating income 160 197 247 184 Net income 73 112 157 77 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 943 $ 948 $ 1,071 $ 958 Operating income 169 196 250 162 Net income 81 110 163 77 |
Infrareit Acquisition And Shary
Infrareit Acquisition And Sharyland Asset Exchange | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Infrareit Acquisition And Sharyland Asset Exchange [Abstract] | ||
INFRAREIT ACQUISITION AND SHARYLAND ASSET EXCHANGE | 13. INFRAREIT ACQUISITION On October 18, 2018, we entered into the InfraREIT Merger Agreement, pursuant to which we will acquire all of the equity interests of InfraREIT and its subsidiary, InfraREIT Partners, subject to the conditions discussed below. The InfraREIT Acquisition will occur through the merger of InfraREIT with and into a newly formed wholly owned subsidiary of Oncor, followed by the merger of another newly formed wholly owned subsidiary of Oncor with and into InfraREIT Partners. InfraREIT’s stockholders and the limited partners of InfraREIT Partners will receive $21.00 in cash per share of common stock or limited partnership unit, as applicable. Total purchase price based on the number of shares and partnership units of InfraREIT and InfraREIT Partners currently outstanding is approximately $1.275 billion, plus we will bear certain transaction costs incurred by InfraREIT (including a management agreement termination fee of approximately $40.5 million that InfraREIT has agreed to pay Hunt Consolidated, Inc. at closing). The acquisition also includes InfraREIT’s outstanding debt, which totaled an aggregate of approximately $945 million at September 30, 2018. In connection with entering into the InfraREIT Merger Agreement , we have received a commitment letter from Sempra and certain indirect equity holders of Texas Transmission (collectively, Equity Commitment Parties), pursuant to which, subject to the terms and conditions set forth therein, the Equity Commitment Parties have committed to provide their pro rata share of capital contributions to us in an aggregate principal amount of up to $1.330 billion, to fund the cash consideration payable by us in the InfraREIT Acquisition and the payment of certain related fees and expenses. The funding provided for in the commitment letter is contingent on the satisfaction of customary conditions, including the substantially simultaneous closing of the transactions contemplated by the InfraREIT Merger Agreement , but is not a condition to the closing of the InfraREIT Acquisition. As a condition to the InfraREIT Acquisition, InfraREIT’s subsidiary, SDTS and SDTS’s tenant, SU, will complete an asset exchange (SDTS-SU Asset Exchange) immediately prior to the closing of the InfraREIT Acquisition, pursuant to which SDTS will exchange its south Texas assets for certain assets owned by SU. As result, upon closing of the InfraREIT Acquisition, we will own all of SDTS and SU’s assets and projects in north, central and west Texas and SU will own its and SDTS’s assets in south Texas. In addition, as a condition to the closing of the SDTS-SU Asset Exchange, Sempra will acquire an indirect 50 percent limited partnership interest in SU (Sempra-SU Transaction). As a result of the Sempra-SU Transaction, SU will be our affiliate for purposes of PUCT rules. The SDTS-SU Asset Exchange also contemplates that at closing we and SU will each enter into a future development agreement and, subject to receipt of certain PUCT approvals, an operation and maintenance agreement. The future development agreement addresses ownership and funding of potential future SU transmission projects under certain circumstances where at least one endpoint of the project is a legacy SDTS asset. Oncor and SU will each own and fund certain percentages of the project depending on the project type and location of the transmission project’s end points. The operation and maintenance agreement provides that Oncor will provide to SU certain operations and maintenance services with respect to the SU assets in south Texas. Such services will be provided by us to SU at cost without a markup or profit. Closing of the InfraREIT Acquisition is subject to the satisfaction of customary closing conditions, including, among others, (i) obtaining the approval of InfraREIT stockholders, (ii) t he absence of certain make-whole, prepayment, accelerated payment obligations, or events of default with respect to certain notes of InfraREIT subsidiaries and obtaining of consents to certain amendments to the terms of the applicable notes, (iii) the satisfaction of certain regulatory conditions, including the receipt of the approval of the PUCT and the FERC, (v) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and (vi) clearance by the Committee on Foreign Investment in the United States. Oncor, InfraREIT and InfraREIT Partners have agreed to use their respective reasonable best efforts, subject to certain exceptions, to consummate the InfraREIT Acquisition as promptly as practicable. The InfraREIT Merger Agreement provides, among other items, that no later than 45 days after October 18, 2018, the parties will submit to the PUCT a single, integrated Joint Application for Sale, Transfer or Merger and requests for other necessary approvals required to effect the InfraREIT Acquisition. The InfraREIT Merger Agreement also provides for a go-shop period until 11:59 PM Dallas time on November 17, 2018, during which period InfraREIT and certain of its subsidiaries and representatives may solicit alternative acquisition proposals. | 14. SHARYLAND ASSET EXCHANGE On July 21, 2017, we entered into the Sharyland Agreement with the Sharyland Entities. The Sharyland Agreement provided that we would exchange certain of our transmission assets and cash for certain of the Sharyland Entities’ distribution assets (constituting substantially all of their electricity distribution business) and certain of their transmission assets. The transaction for assets between Oncor and SDTS was structured to qualify, in part, as a simultaneous tax deferred like kind exchange of assets to the extent that the assets exchanged are of “like kind” (within the meaning of Section 1031 of the Code). On August 4, 2017, we, SDTS and SU filed a joint application for sale, transfer, or merger in PUCT Docket No. 47469 requesting PUCT approval of the Sharyland Asset Exchange, and on October 13, 2017, the PUCT issued an order approving the transactions. On November 9, 2017, the parties consummated the transactions. We exchanged approximately $383 million of our transmission assets, consisting of approximately 258 miles ( 517 circuit miles) of 345 kV transmission lines, and approximately $25 million in cash for approximately $408 million of the Sharyland Entities’ distribution assets and certain of their transmission assets. The transaction expanded our customer base in west Texas and provides some potential growth opportunities of the distribution network. As part of the transaction, we acquired approximately 55,000 customers. The acquisition did not result in the recognition of goodwill as the assets’ regulatory book value approximates their fair value. Distribution revenues following the November 9, 2017 Sharyland Asset Exchange included in our 2017 consolidated results are $12 million. Earnings of the Sharyland distribution assets we acquired are largely offset by a reduction in earnings attributable to the transfer of transmission assets. The Sharyland Asset Exchange did not have a material effect on our results of operations, financial position or cash flows for the year ended December 31, 2017. Had the Sharyland Asset Exchange occurred at the beginning of the 2017 annual reporting period, the revenue and earnings of the combined entity for the current reporting period would not have been significantly different. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Business and Significant Accounting Policies [Abstract] | ||
Description Of Business | Description of Business References in this report to “we,” “our,” “us” and “the company” are to Oncor. See “Glossary” for definition of terms and abbreviations. We are a regulated electricity transmission and distribution company principally engaged in providing delivery services to REPs that sell power in the north-central, eastern and western parts of Texas. We are a direct, majority-owned subsidiary of Oncor Holdings, which is a direct, wholly-owned subsidiary of STIH, a direct wholly-owned subsidiary of STH. In connection with the Sempra Acquisition, on March 9, 2018, STH became an indirect wholly- owned subsidiary of Sempra. Oncor Holdings owns 80.25% of our membership interests and Texas Transmission owns 19.75% of our membership interests. We are managed as an integrated business; consequently, there are no separate reportable business segments. Various “ring-fencing” measures that had been taken to enhance our credit quality and the separateness between the Oncor Ring-Fenced Entities and its majority owner (formerly the Texas Holdings Group and now Sempra) continue to remain in effect after the Sempra Acquisition. These measures serve to mitigate our and Oncor Holdings’ credit exposure to Sempra and to reduce the risk that our assets and liabilities or those of Oncor Holdings would be substantively consolidated with the assets and liabilities of Sempra in connection with a bankruptcy of one or more Sempra entities. Such measures include, among other things: the 19.75% equity interest held by Texas Transmission; maintenance of separate books and records for the Oncor Ring-Fenced Entities; our board of directors being comprised of a majority of independent directors; and prohibitions on the Oncor Ring-Fenced Entities providing credit support to or receiving credit support from Sempra entities. The assets and liabilities of the Oncor Ring-Fenced Entities are separate and distinct from those of Sempra. None of the assets of the Oncor Ring-Fenced Entities are available to satisfy the debt or contractual obligations of Sempra entities. We do not bear any liability for debt or contractual obligations of Sempra, and vice versa. Accordingly, our operations are conducted, and our cash flows are managed, independently from Sempra. For more information on ring-fencing measures, see Note 2. | Description of Business References in this report to “we,” “our,” “us” and “the company” are to Oncor and/or its subsidiary as apparent in the context. See “Glossary” for definition of terms and abbreviations. We are a regulated electricity transmission and distribution company principally engaged in providing delivery services to REPs that sell power in the north-central, eastern and western parts of Texas. Revenues from subsidiaries of Vistra (formerly subsidiaries of TCEH) represented 22% , 23% and 25% of our total operating revenues for the years ended December 31, 2017, 2016 and 2015, respectively. We are a direct, majority-owned subsidiary of Oncor Holdings, which is a direct, wholly-owned subsidiary of EFIH, a direct, wholly-owned subsidiary of EFH Corp. EFH Corp. is a subsidiary of Texas Holdings, which is controlled by the Sponsor Group. Oncor Holdings owns 80.03% of our membership interests, Texas Transmission owns 19.75% of our membership interests and certain members of our management team and board of directors indirectly own the remaining membership interests through Investment LLC. We are managed as an integrated business; consequently, there are no separate reportable business segments. Our consolidated financial statements include our former wholly-owned, bankruptcy-remote financing subsidiary, Bondco, a VIE through December 29, 2016, at which time it was dissolved (see Note 13) . This financing subsidiary was organized for the limited purpose of issuing certain transition bonds to recover generation-related regulatory asset stranded costs and other qualified costs under an order issued by the PUCT in 2002. Bondco issued an aggregate $1.3 billion principal amount of transition bonds during 2003 and 2004. The 2003 Series transition bonds matured and were paid in full in 2015 and the 2004 Series transition bonds matured and were paid in full in May 2016. Final true-up proceedings and refunds of over-collected transition charges for the transition bonds were conducted by Oncor and the PUCT during 2016 and had no material net income impact. Various “ring-fencing” measures have been taken to enhance the separateness between the Oncor Ring-Fenced Entities and the Texas Holdings Group and our credit quality. These measures serve to mitigate our and Oncor Holdings’ credit exposure to the Texas Holdings Group and to reduce the risk that our assets and liabilities or those of Oncor Holdings would be substantively consolidated with the assets and liabilities of the Texas Holdings Group in connection with a bankruptcy of one or more of those entities, including the EFH Bankruptcy Proceedings discussed below. Such measures include, among other things: our sale of a 19.75% equity interest to Texas Transmission in November 2008; maintenance of separate books and records for the Oncor Ring-Fenced Entities; our board of directors being comprised of a majority of independent directors; and prohibitions on the Oncor Ring-Fenced Entities providing credit support to, or receiving credit support from, any member of the Texas Holdings Group. The assets and liabilities of the Oncor Ring-Fenced Entities are separate and distinct from those of the Texas Holdings Group. None of the assets of the Oncor Ring-Fenced Entities are available to satisfy the debt or contractual obligations of any member of the Texas Holdings Group. We do not bear any liability for debt or contractual obligations of the Texas Holdings Group, and vice versa. Accordingly, our operations are conducted, and our cash flows are managed, independently from the Texas Holdings Group. In the PUCT proceedings requesting approval of the Sempra Acquisition (PUCT Docket No. 47675), Sempra has committed to certain ring-fencing measures that will be in effect upon closing of the Sempra Acquisition. For more information on the Sempra Acquisition and the related PUCT proceedings, see Note 2. |
EFH Bankruptcy Proceedings And Change In Indirect Ownership Of Oncor | EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor In April 2014, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities were not parties to the EFH Bankruptcy Proceedings. In connection with the plans of reorganization in the EFH Bankruptcy Proceedings, on March 9, 2018, Sempra acquired the 80.03% of Oncor’s membership interests owned indirectly by EFH Corp. and EFIH (Sempra Acquisition). See Note 2 for further information. | EFH Bankruptcy Proceedings On the EFH Petition Date, EFH Corp. and the substantial majority of its direct and indirect subsidiaries at the time, including EFIH, EFCH and TCEH, commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. The Oncor Ring-Fenced Entities are not parties to the EFH Bankruptcy Proceedings. We believe the “ring-fencing” measures discussed above mitigate our potential exposure to the EFH Bankruptcy Proceedings. See Note 2 for a discussion of the potential impacts of the EFH Bankruptcy Proceedings on our financial statements. |
Basis Of Presentation | Basis of Presentation These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes included in the 2017 Form 10-K. In the opinion of Oncor management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the results of operations and financial position have been made. All intercompany items and transactions have been eliminated in consolidation. The results of operations for an interim period may not give a true indication of results for a full year due to seasonality. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated. | Basis of Presentation Our consolidated financial statements have been prepared in accordance with GAAP. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated. |
Use Of Estimates | Use of Estimates Preparation of our financial statements requires management to make estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. No material adjustments were made to previous estimates or assumptions during the current period. | Use of Estimates Preparation of our financial statements requires management to make estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. No material adjustments were made to previous estimates or assumptions during the current year. |
Goodwill | Goodwill We evaluate goodwill for impairment annually and whenever events or changes in circumstances indicate that an impairment may exist. Beginning in 2018, we elected to change our annual goodwill assessment date from December 1 to October 1 to correspond with the assessment date of our new majority owner. We do not believe this change in the assessment date is a material change. | |
Revenue Recognition | Revenue Recognition General Oncor’s revenue is billed under tariffs approved by the PUCT and the majority of revenues are related to providing electric delivery service to consumers. Tariff rates are designed to recover the cost of providing electric delivery service including a reasonable rate of return on invested capital. Revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. Reconcilable Tariffs The PUCT has designated certain tariffs (TCRF, EECRF surcharges, AMS surcharges and charges related to transition bonds) as reconcilable, which means the differences between amounts billed under these tariffs and the related incurred costs are deferred as either regulatory assets or regulatory liabilities. Accordingly, at prescribed intervals, future tariffs are adjusted to either repay regulatory liabilities or collect regulatory assets. See “Regulatory Assets and Liabilities” below. | |
Impairment Of Long-Lived Assets And Goodwill | Impairment of Long-Lived Assets and Goodwill We evaluate long-lived assets (including intangible assets with finite lives) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We also evaluate goodwill for impairment annually (at December 1) and whenever events or changes in circumstances indicate that an impairment may exist. The determination of the existence of these and other indications of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows. If at the assessment date our carrying value exceeds our estimated fair value (enterprise value), then the estimated enterprise value is compared to the estimated fair values of our operating assets (including identifiable intangible assets) and liabilities at the assessment date. The resultant implied goodwill amount is compared to the recorded goodwill amount. Any excess of the recorded goodwill amount over the implied goodwill amount is written off as an impairment charge. The goodwill impairment tests performed in 2017, 2016 and 2015 were based on a qualitative assessment in which we considered macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relative factors. Based on tests results, no impairments were recognized in 2017, 2016 or 2015 . | |
Provision In Lieu Of Income Taxes | Provision in Lieu of Income Taxes Effective with the November 2008 sale of equity interests to Texas Transmission and Investment LLC, we became a partnership for U.S. federal income tax purposes, and subsequently we are not a member of EFH Corp.’s consolidated tax group and only EFH Corp.’s share of our partnership income is included in its consolidated federal income tax return. Our tax sharing agreement with Oncor Holdings and EFH Corp. was amended in November 2008 to include Texas Transmission and Investment LLC. The tax sharing agreement provides for the calculation of tax liability substantially as if we and Oncor Holdings were taxed as corporations, and requires tax payments to members determined on that basis (without duplication for any income taxes paid by a subsidiary of Oncor Holdings). While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and the presentation of our financial statements as an entity subject to cost-based regulatory rate-setting processes, with such costs including income taxes, the financial statements present amounts determined under the tax sharing agreement as “provision in lieu of income taxes” and “liability in lieu of deferred income taxes” for periods subsequent to the sales of equity interests discussed in Note 4. Such amounts are determined in accordance with the provisions of accounting guidance for income taxes and for uncertainty in income taxes and thus differences between the book and tax bases of assets and liabilities are accounted for as if we were taxed as a corporation. The accounting guidance for rate-regulated enterprises requires the recognition of regulatory assets or liabilities if it is probable such deferred tax-related amounts will be recovered from, or returned to customers in future rates. Investment tax credits are amortized to income over the estimated lives of the related properties. We classify interest and penalties expense related to uncertain tax positions as current provision in lieu of income taxes as discussed in Note 4. | |
Defined Benefit Pension Plans And OPEB Plans | Defined Benefit Pension Plans and OPEB Plans We have liabilities under pension plans that offer benefits based on either a traditional defined benefit formula or a cash balance formula and an OPEB plan that offers certain health care and life insurance benefits to eligible employees and their eligible dependents upon the retirement of such employees from the company. Costs of pension and OPEB plans are dependent upon numerous factors, assumptions and estimates. See Note 10 for additional information regarding pension and OPEB plans. | |
Contingencies | Contingencies We evaluate and account for contingencies using the best information available. A loss contingency is accrued and disclosed when it is probable that an asset has been impaired or a liability incurred and the amount of the loss can be reasonably estimated. If a range of probable loss is established, the minimum amount in the range is accrued, unless some other amount within the range appears to be a better estimate. If the probable loss cannot be reasonably estimated, no accrual is recorded, but the loss contingency is disclosed to the effect that the probable loss cannot be reasonably estimated. A loss contingency will be disclosed when it is reasonably possible that an asset has been impaired or a liability incurred. If the likelihood that an impairment or incurrence is remote, the contingency is neither accrued nor disclosed. Gain contingencies are recognized upon realization. | |
System Of Accounts | System of Accounts Our accounting records have been maintained in accordance with the FERC Uniform System of Accounts as adopted by the PUCT. | |
Property, Plant And Equipment | Property, Plant and Equipment Properties are stated at original cost. The cost of self-constructed property additions includes materials and both direct and indirect labor and applicable overhead and an allowance for funds used during construction. D epreciation of property, plant and equipment is calculated on a straight-line basis over the estimated service lives of the properties based on depreciation rates approved by the PUCT. As is common in the industry, depreciation expense is recorded using composite depreciation rates that reflect blended estimates of the lives of major asset groups as compared to depreciation expense calculated on a component asset-by-asset basis. Depreciation rates include plant removal costs as a component of depreciation expense, consistent with regulatory treatment. Actual removal costs incurred are charged to accumulated depreciation. When accrued removal costs exceed incurred removal costs, the difference is reclassified as a regulatory liability to retire assets in the future. | |
Regulatory Assets And Liabilities | Regulatory Assets and Liabilities We are subject to rate regulation and our financial statements reflect regulatory assets and liabilities in accordance with accounting standards related to the effect of certain types of regulation. Regulatory assets and liabilities represent probable future revenues that will be recovered from or refunded to customers through the ratemaking process based on PURA and/or the PUCT’s orders, precedents or substantive rules. Rate regulation is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital subject to PUCT review for reasonableness and prudence and possible disallowance. Regulatory decisions can have an impact on the recovery of costs, the rate earned on invested capital and the timing and amount of assets to be recovered by rates. See Note 5 for more information regarding regulatory assets and liabilities. | |
Franchise Taxes | Franchise Taxes Franchise taxes are assessed to us by local governmental bodies, based on kWh delivered and are a principal component of taxes other than amounts related to income taxes as reported in the income statement. Franchise taxes are not a “pass through” item. The rates we charge customers are intended to recover the franchise taxes, but we are not acting as an agent to collect the taxes from customers. | |
Allowance For Funds Used During Construction (AFUDC) | Allowance for Funds Used During Construction (AFUDC) AFUDC is a regulatory cost accounting procedure whereby both interest charges on borrowed funds and a return on equity capital used to finance construction are included in the recorded cost of utility plant and equipment being constructed. AFUDC is capitalized on all projects involving construction periods lasting greater than thirty days. The equity portion, if any, of capitalized AFUDC is accounted for as other income. See Note 13 for detail of amounts charged to interest expense. | |
Cash And Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash and cash equivalents, temporary cash investments purchased with a remaining maturity of three months or less are considered to be cash equivalents. | |
Fair Value Of Nonderivative Financial Instruments | Fair Value of Nonderivative Financial Instruments The carrying amounts for financial assets classified as current assets and the carrying amounts for financial liabilities classified as current liabilities approximate fair value due to the short maturity of such instruments. The fair values of other financial instruments, for which carrying amounts and fair values have not been presented, are not materially different than their related carrying amounts. The following discussion of fair value accounting standards applies primarily to our determination of the fair value of assets in the pension and OPEB plans trusts (see Note 10) and long-term debt (see Note 7). Accounting standards related to the determination of fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a “mid-market” valuation convention (the mid-point price between bid and ask prices) as a practical expedient to measure fair value for the majority of our assets and liabilities subject to fair value measurement on a recurring basis. We primarily use the market approach for recurring fair value measurements and use valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. We categorize our assets and liabilities recorded at fair value based upon the following fair value hierarchy: · Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. · Level 2 valuations use inputs that, in the absence of actively quoted market prices, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets , (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Our Level 2 valuations utilize over-the-counter broker quotes, quoted prices for similar assets or liabilities that are corroborated by correlations or other mathematical means and other valuation inputs. · Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. We use the most meaningful information available from the market combined with internally developed valuation methodologies to develop our best estimate of fair value. We utilize several different valuation techniques to measure the fair value of assets and liabilities, relying primarily on the market approach of using prices and other market information for identical and/or comparable assets and liabilities for those items that are measured on a recurring basis. The fair value of certain investments is measured using the net asset value (NAV) per share as a practical expedient. Such investments measured at NAV are not required to be categorized within the fair value hierarchy. See “Changes in Accounting Standards” below. | |
Consolidation Of Variable Interest Entities | Consolidation of Variable Interest Entities A VIE is an entity with which we have a relationship or arrangement that indicates some level of control over the entity or results in economic risks to us. We consolidate a VIE if we have: a) the power to direct the significant activities of the VIE and b) the right or obligation to absorb profit and loss from the VIE (primary beneficiary). See Note 13. | |
Derivative Instruments And Mark-To-Market Accounting | Derivative Instruments and Mark-to-Market Accounting We have from time-to-time entered into derivative instruments to hedge interest rate risk. If the instrument meets the definition of a derivative under accounting standards related to derivative instruments and hedging activities, the fair value of each derivative is recognized on the balance sheet as a derivative asset or liability and changes in the fair value are recognized in net income, unless criteria for certain exceptions are met. This recognition is referred to as “mark-to-market” accounting. | |
Changes In Accounting Standards | Changes in Accounting Standards Since May 2014, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , along with other supplemental guidance (together, Topic 606). Topic 606 introduced new, increased requirements for disclosure of revenue in financial statements and guidance intended to eliminate inconsistencies in the recognition of revenue. We adopted Topic 606 effective January 1, 2018 using the modified retrospective approach and elected the practical expedient available that allows an entity to recognize revenue in the amount to which the entity has the right to invoice related to performance completed to date. Our revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. The new guidance did not change this pattern of recognition and therefore the adoption did not have a material effect on our reported results of operations, financial position or cash flows. Topic 606 also requires the separate presentation of “alternative revenue program” revenues on the income statement. We anticipate less than $20 million annually in alternative revenue program revenues related to our energy efficiency program and will disclose such activity in the notes to financial statements. See Note 4 for additional disclosures about revenues from contracts with customers. In February 2016, the FASB issued ASU 2016-02 which created FASB Topic 842, Leases (Topic 842). Topic 842 amends previous GAAP to require the balance sheet recognition of substantially all lease assets and liabilities, including operating leases. Operating lease liabilities are not classified as debt for GAAP purposes under Topic 842 and are not treated as debt for regulatory purposes. Under current standards, all of Oncor’s existing leases meet the definition of an operating lease. Under the new rules, the recognition of any finance leases (currently known as capital leases) on the balance sheet would be classified as debt for GAAP purposes and are expected to be defined as debt for our regulatory capital structure purposes (see Note 9 for details) similar to the current capital lease treatment. We plan to adopt Topic 842 on January 1, 2019 and we expect to use certain practical expedients and policy elections available under the guidance including a practical expedient to not assess whether existing land easements that were not previously accounted for as leases are or contain a lease under Topic 842, an adoption method to not restate comparative periods and a policy election to forego the application of Topic 842 recognition requirements to short-term leases. The initial adoption of Topic 842 will affect our balance sheet, as our contracts for office space and fleet vehicles are currently classified as operating leases. Subsequent to adoption, to the extent Oncor enters into finance leases, its credit facility covenants and capitalization ratios could be impacted. We continue to evaluate our contracts for proper treatment under the new standards and the estimated impact on our financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , an amendment to Topic 715, Compensation – Retirement Benefits . ASU 2017-07 requires the non-service cost components of net retirement benefit plan costs be presented as non-operating in the income statement. In addition, only the service cost component of net retirement benefit plan cost is eligible for capitalization as part of inventory or property, plant and equipment. We adopted ASU 2017-07 on January 1, 2018. The presentation of costs is required to be applied on a retrospective basis while the capitalization eligibility requirement is applied on a prospective basis. The guidance allows a practical expedient that permits use of previously disclosed service costs and non-service costs of the Pension and OPEB Plans in the comparative periods as appropriate estimates when recasting the presentation of these costs in the income statements. We have elected this practical expedient. For cash flow purposes on a prospective basis, non-service costs will be reflected as a reduction to operating cash flows, offset by lower cash used in investing activities (lower capital expenditures). The new guidance did not have a material effect on our results of operations, financial position or net change in total cash flows and we do not expect the guidance to have a material effect on our rate-making process. For the three- and nine-month periods ended September 30, 2017, the adoption of ASU 2017-07 resulted in a reclassification of $8 million and $23 million from operation and maintenance expense to other income and (deductions), respectively, and a corresponding reclassification of $3 million and $9 million, respectively, from provision in lieu of income taxes to nonoperating provision in lieu of income taxes. For the years 2015, 2016 and 2017, the reclassification amounts are $28 million, $28 million and $31 million from operation and maintenance expense to other income and (deductions), respectively, and a corresponding reclassification of $10 million, $10 million and $11 million, respectively, from provision in lieu of income taxes to nonoperating provision in lieu of income taxes. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). ASU 2018-02 allows a reclassification from accumulated other comprehensive income (AOCI) to capital accounts for stranded tax effects resulting from the TCJA which we expect to elect. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. Our stranded tax effects in AOCI are approximately $4 million and will increase our capital account upon reclassification. ASU 2018-02 can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. ASU 2018-02 is effective for our 2019 annual reporting period, including interim periods therein, with early adoption permitted. We plan to adopt the standard on a prospective basis, January 1, 2019. | Changes in Accounting Standards Since May 2014, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers along with other supplemental guidance (together, Topic 606). Topic 606 introduces new, increased requirements for disclosure of revenue in financial statements and guidance that are intended to eliminate inconsistencies in the recognition of revenue. We will add a revenue-related note to the financial statements to satisfy the new disclosure requirements of Topic 606. Topic 606 also requires the separate presentation of “alternative revenue program” revenues on the income statement. We anticipate less than $20 million annually in alternative revenue program revenues related to our energy efficiency program and will disclose such activity in the notes to financial statements. We are required to adopt Topic 606 effective January 1, 2018. We will adopt using the modified retrospective approach and will elect certain practical expedients available under the guidance. Our revenues from customers are tariff-based and are designed to recover the cost of providing electric delivery service to customers including a reasonable rate of return on invested capital. Revenues are generally recognized when the underlying service has been provided in an amount prescribed by the related tariff. The new guidance does not change this pattern of recognition and therefore the adoption will not have an effect on our reported results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02 which created FASB Topic 842, Leases (Topic 842) . Topic 842 amends previous GAAP to require the balance sheet recognition of lease assets and liabilities for operating leases. Operating lease liabilities will not be classified as debt for GAAP purposes under Topic 842 and will not be treated as debt for regulatory purposes. At this time, all of Oncor’s existing leases meet the definition of an operating lease liability. Under the new rules, the recognition of any finance leases (currently known as capital leases) on the balance sheet would be classified as debt for GAAP purposes and are expected to be defined as debt for our regulatory capital structure purposes (see Note 9 for details) similar to the current capital lease treatment. We will be required to adopt Topic 842 by January 1, 2019. We expect to adopt at that time using certain practical expedients available under the transition guidance including a practical expedient to not assess whether existing land easements that were not previously accounted for as leases are or contain a lease under Topic 842. The initial adoption of Topic 842 will affect our balance sheet, as leased buildings and vehicles are recognized as operating lease liabilities. Subsequent to adoption, to the extent Oncor enters into finance leases, its credit facility covenants and capitalization ratios could be impacted. We continue to compile a population of contracts for assessment and evaluate the potential impact of Topic 842 on our financial statements. In March 2017, the FASB issued ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , an amendment to Topic 715, Compensation – Retirement Benefits (Topic 715). Topic 715, as amended, will require the non-service cost components of net retirement benefit plan costs be presented as non-operating in the income statement. In addition, only the service cost component of net retirement benefit plan cost will be eligible for capitalization as part of inventory or property, plant and equipment. We are required to adopt the amendment effective January 1, 2018. The income statement presentation requirement must be applied on a retrospective basis while the capitalization eligibility requirement is applied on a prospective basis. The guidance allows a practical expedient that permits use of previously disclosed service costs and non-service costs from the Pension and OPEB Plans note in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the income statements. We will elect this practical expedient. For cash flow purposes on a prospective basis, non-service costs will be reflected as a reduction to operating cash flows, offset by lo wer cash used in investing activities (lower capital expenditures). We do not expect the new guidance to have a material effect on our rate-making process, our results of operations, financial position or net change in total cash flows but continue to evaluate for potential impacts. |
Provision In Lieu Of Income T_2
Provision In Lieu Of Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provision In Lieu Of Income Taxes [Abstract] | |
Schedule Of Deferred Tax Assets and Liabilities | At Ended December 31, 2017 2016 Deferred Tax Related Assets: Employee benefit liabilities $ 253 $ 413 Regulatory liabilities 15 26 Other 7 79 Total 275 518 Deferred Tax Related Liabilities: Property, plant and equipment 1,551 2,892 Regulatory assets 240 412 Other 1 2 Total 1,792 3,306 Liability in lieu of deferred income taxes - net $ 1,517 $ 2,788 |
Components Of Income Tax Provisions (Benefits) | Year Ended December 31, 2017 2016 2015 Reported in operating expenses: Current: U.S. federal $ (55) $ 60 $ 189 State 20 20 32 Deferred: U.S. federal 292 181 55 State - - (13) Amortization of investment tax credits (2) (2) (3) Total reported in operating expenses 255 259 260 Reported in other income and deductions: Current: U.S. federal (5) (5) (7) State - - - Deferred federal 17 - (1) Total reported in other income and deductions 12 (5) (8) Total provision in lieu of income taxes $ 267 $ 254 $ 252 |
Schedule Of Income Tax Reconciliation | Year Ended December 31, 2017 2016 2015 Income before provision in lieu of income taxes $ 686 $ 685 $ 684 Provision in lieu of income taxes at the U.S. federal statutory rate of 35% $ 240 $ 240 $ 239 Amortization of investment tax credits – net of deferred tax effect (2) (2) (3) Amortization (under regulatory accounting) of statutory tax rate changes (1) (1) (1) Impact of federal statutory rate change from 35% to 21% 21 - - Texas margin tax, net of federal tax benefit 13 13 13 Nontaxable gains on benefit plan investments (4) - - Other, including audit settlements - 4 4 Reported provision in lieu of income taxes $ 267 $ 254 $ 252 Effective rate 38.9% 37.1% 36.8% |
Schedule Of Changes To Uncertain Tax Positions | 2017 2016 2015 Balance at January 1, excluding interest and penalties $ 3 $ 3 $ 2 Additions based on tax positions related to prior years - - - Reductions based on tax positions related to prior years (3) - - Settlements with taxing authorities - - 1 Balance at December 31, excluding interest and penalties $ - $ 3 $ 3 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenues [Abstract] | |
Disaggregation Of Revenues | Three Months Ended September 30, Nine Months Ended September 30, Operating revenues 2018 2018 Revenues contributing to earnings: Distribution base revenues $ 604 $ 1,640 Transmission base revenues (TCOS revenues) Billed to third-party wholesale customers 137 403 Billed to REPs serving Oncor distribution customers, through TCRF 77 234 Total transmission base revenues 214 637 Other miscellaneous revenues 17 48 Total revenues contributing to earnings 835 2,325 Revenues collected for pass-through expenses: TCRF - third-party wholesale transmission service 237 719 EECRF and other regulatory charges 23 62 Revenues collected for pass-through expenses 260 781 Total operating revenues $ 1,095 $ 3,106 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Regulatory Assets and Liabilities [Abstract] | ||
Components Of Regulatory Assets And Liabilities | Remaining Rate Recovery/Amortization Period at Carrying Amount At September 30, 2018 September 30, 2018 December 31, 2017 Regulatory assets: Employee retirement costs being amortized 10 years $ 305 $ 331 Unrecovered employee retirement costs incurred since the last rate review period (a) To be determined 30 30 Employee retirement liability (a)(b)(c) To be determined 800 854 Employee retirement plans - non-service costs Lives of related assets 33 - Self-insurance reserve (primarily storm recovery costs) being amortized 10 years 362 394 Unrecovered self-insurance reserve incurred since the last rate review period (a) To be determined 53 49 Securities reacquisition costs Lives of related debt 10 12 Deferred conventional meter and metering facilities depreciation 3 years 42 57 Under-recovered AMS costs 10 years 190 206 Excess deferred income taxes - 197 Energy efficiency performance bonus (b) 1 year or less 3 12 Other regulatory assets Various 22 38 Total regulatory assets 1,850 2,180 Regulatory liabilities: Estimated net removal costs Lives of related assets 1,006 954 Excess deferred income taxes Primarily over lives of related assets 1,587 1,789 Federal income taxes - over-collected due to TCJA rate change 1 year or less 75 - Over-recovered wholesale transmission service expense (b) 1 year or less 73 47 Other regulatory liabilities Various 22 17 Total regulatory liabilities 2,763 2,807 Net regulatory assets (liabilities) $ (913) $ (627) ____________ (a) Recovery is specifically authorized by statute or by the PUCT, subject to reasonableness review. (b) Not earning a return in the regulatory rate-setting process. Represents unfunded liabilities recorded in accordance with pension and OPEB accounting standards. | Remaining Rate Recovery/Amortization Period at Carrying Amount At December 31, 2017 December 31, 2017 December 31, 2016 Regulatory assets: Employee retirement costs being amortized 10 years $ 331 $ 23 Unrecovered employee retirement costs incurred since the last rate review period (b) To be determined 30 327 Employee retirement liability (a)(b)(c) To be determined 854 849 Self-insurance reserve (primarily storm recovery costs) being amortized 10 years 394 64 Unrecovered self-insurance reserve incurred since the last rate review period (b) To be determined 49 367 Securities reacquisition costs (post-industry restructure) Lives of related debt 12 13 Deferred conventional meter and metering facilities depreciation 3 years 57 78 Under-recovered AMS costs 10 years 206 209 Unprotected excess deferred taxes Various 197 - Energy efficiency performance bonus (a) 1 year or less 12 10 Other regulatory assets Various 38 34 Total regulatory assets 2,180 1,974 Regulatory liabilities: Estimated net removal costs Lives of related assets 954 819 Protected excess deferred taxes Various 1,595 3 Unprotected excess deferred taxes Various 194 - Over-recovered wholesale transmission service expense (a) 1 year or less 47 10 Other regulatory liabilities Various 17 24 Total regulatory liabilities 2,807 856 Net regulatory assets (liabilities) $ (627) $ 1,118 ____________ (a) Not earning a return in the regulatory rate-setting process. (b) Recovery is specifically authorized by statute or by the PUCT, subject to reasonableness review. Represents unfunded liabilities recorded in accordance with pension and OPEB accounting standards. |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Short-Term Borrowings [Abstract] | |
Schedule Of Short-Term Borrowings | At September 30, At December 31, 2018 2017 Total borrowing capacity $ 2,000 $ 2,000 Commercial paper outstanding (a) (1,099) - Credit facility outstanding (b) - (950) Letters of credit outstanding (c) (9) (9) Available unused credit $ 892 $ 1,041 ____________ a) The weighted average interest rate for commercial paper at September 30, 2018 was 2.45% . b) The weighted average interest rate for the credit facility at December 31, 2017 was 2.62% . c) Interest rates on outstanding letters of credit at September 30, 2018 and December 31, 2017 were 1.200% and 1.325% , respectively, based on our credit ratings. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Long-Term Debt [Abstract] | ||
Schedule Of Long-Term Debt | September 30, December 31, 2018 2017 Secured: 6.80% Fixed Senior Notes due September 1, 2018 $ - $ 550 2.15% Fixed Senior Notes due June 1, 2019 250 250 5.75% Fixed Senior Notes due September 30, 2020 126 126 4.10% Fixed Senior Notes due June 1, 2022 400 400 7.00% Fixed Debentures due September 1, 2022 800 800 2.95% Fixed Senior Notes due April 1, 2025 350 350 3.70% Fixed Senior Notes due November 15, 2028 350 - 7.00% Fixed Senior Notes due May 1, 2032 500 500 7.25% Fixed Senior Notes due January 15, 2033 350 350 7.50% Fixed Senior Notes due September 1, 2038 300 300 5.25% Fixed Senior Notes due September 30, 2040 475 475 4.55% Fixed Senior Notes due December 1, 2041 400 400 5.30% Fixed Senior Notes due June 1, 2042 500 500 3.75% Fixed Senior Notes due April 1, 2045 550 550 3.80% Fixed Senior Notes due September 30, 2047 325 325 4.10% Fixed Senior Notes due November 15, 2048 450 - Secured long-term debt 6,126 5,876 Unsecured: Term loan credit agreement due no later than March 26, 2019 - 275 Total long-term debt 6,126 6,151 Unamortized discount and debt issuance costs (40) (34) Less amount due currently (250) (550) Long-term debt, less amounts due currently $ 5,836 $ 5,567 | December 31, 2017 2016 Secured: 5.000% Fixed Senior Notes due September 30, 2017 $ - $ 324 6.800% Fixed Senior Notes due September 1, 2018 550 550 2.150% Fixed Senior Notes due June 1, 2019 250 250 5.750% Fixed Senior Notes due September 30, 2020 126 126 4.100% Fixed Senior Notes due June 1, 2022 400 400 7.000% Fixed Debentures due September 1, 2022 800 800 2.950% Fixed Senior Notes due April 1, 2025 350 350 7.000% Fixed Senior Notes due May 1, 2032 500 500 7.250% Fixed Senior Notes due January 15, 2033 350 350 7.500% Fixed Senior Notes due September 1, 2038 300 300 5.250% Fixed Senior Notes due September 30, 2040 475 475 4.550% Fixed Senior Notes due December 1, 2041 400 400 5.300% Fixed Senior Notes due June 1, 2042 500 500 3.750% Fixed Senior Notes due April 1, 2045 550 550 3.800% Fixed Senior Notes due September 30, 2047 325 - Secured long-term debt 5,876 5,875 Unsecured: Term loan credit agreement due no later than March 26, 2019 275 - Total long-term debt 6,151 5,875 Unamortized discount and debt issuance costs (34) (36) Less amount due currently (550) (324) Long-term debt, less amounts due currently $ 5,567 $ 5,515 |
Schedule Of Long-Term Debt Maturity | Year Amount 2018 $ 550 2019 525 2020 126 2021 - 2022 1,200 Thereafter 3,750 Unamortized discount and debt issuance costs (34) Total $ 6,117 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule Of Future Miinimum Lease Payments Under Operating Leases | Year Amount 2018 $ 32 2019 21 2020 14 2021 11 2022 10 Thereafter 1 Total future minimum lease payments $ 89 |
Membership Interests (Tables)
Membership Interests (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Membership Interests [Abstract] | ||
Schedule Of Distributions Paid | During 2017, our board of directors declared, and we paid, the following cash distributions to our members: Declaration Date Payment Date Amount July 26, 2017 August 1, 2017 $ 65 April 26, 2017 April 27, 2017 $ 86 March 22, 2017 March 24, 2017 $ 86 During 2016, our board of directors declared, and we paid, the following cash distributions to our members: Declaration Date Payment Date Amount October 26, 2016 October 27, 2016 $ 41 July 27, 2016 August 11, 2016 $ 68 April 27, 2016 May 11, 2016 $ 65 February 24, 2016 February 25, 2016 $ 56 | |
Schedule Of Changes To Membership Interests | Capital Accounts Accumulated Other Comprehensive Income (Loss) Total Membership Interests Balance at December 31, 2017 $ 8,004 $ (101) $ 7,903 Net income 426 - 426 Distributions (30) - (30) Capital contributions 144 - 144 Net effects of cash flow hedges (net of tax) - 2 2 Defined benefit pension plans (net of tax) - 2 2 Balance at September 30, 2018 $ 8,544 $ (97) $ 8,447 Balance at December 31, 2016 $ 7,822 $ (111) $ 7,711 Net income 343 - 343 Distributions (237) - (237) Net effects of cash flow hedges (net of tax) - 1 1 Defined benefit pension plans (net of tax) - 2 2 Balance at September 30, 2017 $ 7,928 $ (108) $ 7,820 | |
Schedule Of Changes To Accumulated Other Comprehensive Income (Loss) | Cash Flow Hedges – Interest Rate Swap Defined Benefit Pension and OPEB Plans Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (18) $ (83) $ (101) Defined benefit pension plans (net of tax) - 2 2 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at September 30, 2018 $ (16) $ (81) $ (97) Balance at December 31, 2016 $ (20) $ (91) $ (111) Defined benefit pension plans (net of tax) - 2 2 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 1 - 1 Balance at September 30, 2017 $ (19) $ (89) $ (108) | The following table presents the changes to accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015. Cash Flow Hedges – Interest Rate Swap Defined Benefit Pension and OPEB Plans Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2014 $ (24) $ (83) $ (107) Defined benefit pension plans (net of tax) - (8) (8) Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2015 $ (22) $ (91) $ (113) Defined benefit pension plans (net of tax) - - - Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2016 $ (20) $ (91) $ (111) Defined benefit pension plans (net of tax) - 8 8 Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges 2 - 2 Balance at December 31, 2017 $ (18) $ (83) $ (101) |
Pension and OPEB Plans (Tables)
Pension and OPEB Plans (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule Of Pension And OPEB Plan Costs | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Components of net allocated pension costs: Service cost $ 7 $ 6 $ 21 $ 18 Interest cost 29 32 89 98 Expected return on assets (29) (28) (89) (86) Amortization of net loss 12 11 36 33 Net pension costs 19 21 57 63 Components of net OPEB costs: Service cost 2 1 6 5 Interest cost 11 12 33 36 Expected return on assets (2) (2) (6) (6) Amortization of prior service cost (8) (5) (21) (15) Amortization of net loss 14 8 41 24 Net OPEB costs 17 14 53 44 Total net pension and OPEB costs 36 35 110 107 Less amounts deferred principally as property or a regulatory asset (17) (25) (52) (76) Net amounts recognized as expense $ 19 $ 10 $ 58 $ 31 | Year Ended December 31, 2017 2016 2015 Pension costs $ 85 $ 76 $ 104 OPEB costs 58 62 53 Total benefit costs 143 138 157 Less amounts recognized principally as property or a regulatory asset (98) (100) (113) Net amounts recognized as expense $ 45 $ 38 $ 44 |
Schedule Of Assumptions Used And Net Periodic Benefit Cost Not Yet Recognized And Amounts Recognized In Other Comprehensive Income (Loss) | Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Assumptions Used to Determine Net Periodic Pension and OPEB Costs: Discount rate 4.05% 4.30% 3.96% 4.35% 4.60% 4.23% Expected return on plan assets 5.17% 5.54% 5.26% 6.10% 6.30% 6.65% Rate of compensation increase 3.33% 3.29% 3.29% - - - Components of Net Pension and OPEB Costs: Service cost $ 24 $ 23 $ 25 $ 7 $ 7 $ 7 Interest cost 131 134 131 47 49 43 Expected return on assets (115) (122) (115) (8) (9) (10) Amortization of prior service cost (credit) - - - (20) (20) (20) Amortization of net loss 45 41 63 32 35 33 Net periodic pension and OPEB costs $ 85 $ 76 $ 104 $ 58 $ 62 $ 53 Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: Net loss (gain) $ (11) $ 41 $ 37 $ 139 $ 10 $ 39 Amortization of net loss (45) (41) (63) (32) (35) (33) Plan amendments - - - (78) - - Amortization of prior service (cost) credit - - - 20 20 20 Total recognized as regulatory assets or other comprehensive income (56) - (26) 49 (5) 26 Total recognized in net periodic pension and OPEB costs and as regulatory assets or other comprehensive income $ 29 $ 76 $ 78 $ 107 $ 57 $ 79 | |
Schedule Of Assumptions Used | Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Assumptions Used to Determine Benefit Obligations at Period End: Discount rate 3.54% 4.05% 4.30% 3.73% 4.35% 4.60% Rate of compensation increase 4.46% 3.33% 3.29% - - - | |
Schedule Of Changes In Projected Benefit Obligations And Changes In Fair Value Of Plan Assets And Net Funded Status | Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 3,307 $ 3,201 $ 1,116 $ 1,088 Service cost 24 23 7 7 Interest cost 131 134 47 49 Participant contributions - - 19 17 Assumption of liabilities - - - 7 Plan amendments - - (78) - Actuarial (gain) loss 201 106 154 10 Benefits paid (163) (157) (67) (62) Projected benefit obligation at end of year $ 3,500 $ 3,307 $ 1,198 $ 1,116 Accumulated benefit obligation at end of year $ 3,387 $ 3,213 $ - $ - Change in Plan Assets: Fair value of assets at beginning of year $ 2,287 $ 2,252 $ 143 $ 141 Actual return (loss) on assets 327 188 23 9 Employer contributions 149 4 31 31 Assets related to assumed liabilities - - - 7 Participant contributions - - 19 17 Benefits paid (163) (157) (67) (62) Fair value of assets at end of year $ 2,600 $ 2,287 $ 149 $ 143 Funded Status: Projected benefit obligation at end of year $ (3,500) $ (3,307) $ (1,198) $ (1,116) Fair value of assets at end of year 2,600 2,287 149 143 Funded status at end of year $ (900) $ (1,020) $ (1,049) $ (973) | |
Schedule Of Amounts Recognized In Balance Sheet | Pension Plans OPEB Plan Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Amounts Recognized in the Balance Sheet Consist of: Liabilities: Other current liabilities $ (4) $ (4) $ (12) $ - Other noncurrent liabilities (896) (1,016) (1,037) (973) Net liability recognized $ (900) $ (1,020) $ (1,049) $ (973) Regulatory assets: Net loss $ 538 $ 583 $ 402 $ 296 Prior service cost (credit) - - (86) (30) Net regulatory asset recognized $ 538 $ 583 $ 316 $ 266 Accumulated other comprehensive net loss $ 124 $ 136 $ 3 $ 4 | |
Schedule Of Projected Benefit Obligations And Accumulated Benefit Obligations In Excess Of Plan Assets Fair Value | At December 31, 2017 2016 Pension Plan with PBO and ABO in Excess of Plan Assets: Projected benefit obligations $ 3,316 $ 3,137 Accumulated benefit obligations 3,207 3,051 Plan assets 2,409 2,112 | |
Schedule Of Target Asset Allocation Ranges By Asset Category | Target Allocation Ranges Asset Category Recoverable Non-recoverable International equities 13% - 21% 5% - 9% U.S. equities 16% - 24% 6% - 10% Real estate 3% - 6% - Credit strategies 5% - 9% 4% - 6% Fixed income 45% - 57% 76% - 84% | |
Schedule Of Expected Long-Term Rate Of Return On Assets Assumptions | Pension Plans OPEB Plan Asset Class Expected Long-Term Rate of Return Asset Class Expected Long-Term Rate of Return International equity securities 7.33% 401(h) accounts 6.51% U.S. equity securities 6.40% Life insurance VEBA 6.13% Real estate 5.60% Union VEBA 6.13% Credit strategies 5.03% Non-union VEBA 2.60% Fixed income securities 4.20% Weighted average 6.20% Weighted average (a) 5.48% _____________ (a) The 2018 expected long-term rate of return for the nonregulated portion of the Oncor Retirement Plan is 4.36% and 4.78% for Oncor's portion of the Vistra Retirement Plan. | |
Schedule Of Contributions | Year Ended December 31, 2017 2016 2015 Pension plans contributions $ 149 $ 4 $ 54 OPEB plan contributions 31 31 25 Total contributions $ 180 $ 35 $ 79 | |
Schedule Of Estimated Future Benefit Payments | 2018 2019 2020 2021 2022 2023-27 Pension plans $ 186 $ 187 $ 192 $ 197 $ 200 $ 1,050 OPEB plan $ 56 $ 59 $ 62 $ 65 $ 68 $ 351 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule Of Assets Fair Value Measured On Recurring Basis | At December 31, 2017 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ - $ 11 $ - $ 11 Equity securities: U.S. 235 2 - 237 International 271 - - 271 Fixed income securities: Corporate bonds (a) - 1,081 - 1,081 U.S. Treasuries - 251 - 251 Other (b) - 44 - 44 Real estate - - 3 3 Total assets in the fair value hierarchy $ 506 $ 1,389 $ 3 1,898 Total assets measured at net asset value (c) 702 Total fair value of plan assets $ 2,600 At December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ - $ 14 $ - $ 14 Equity securities: U.S. 193 3 - 196 International 225 - - 225 Fixed income securities: Corporate bonds (a) - 1,089 - 1,089 U.S. Treasuries - 223 - 223 Other (b) - 40 - 40 Real estate - - 5 5 Total assets in the fair value hierarchy $ 418 $ 1,369 $ 5 $ 1,792 Total assets measured at net asset value (c) 495 Total fair value of plan assets $ 2,287 _____________ (a) Substantially all corporate bonds are rated investment grade by a major ratings agency such as Moody’s. (b) Other consists primarily of municipal bonds, emerging market debt, bank loans and fixed income derivative instruments. (c) Fair value was measured using the net asset value (NAV) per share as a practical expedient as the investments did not have a readily determinable fair value and are not required to be classified in the fair value hierarchy. The NAV fair value amounts presented here are intended to permit a reconciliation to the total fair value of plan assets. | |
OPEB Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule Of Assets Fair Value Measured On Recurring Basis | At December 31, 2017 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ 1 $ 1 $ - $ 2 Equity securities: U.S. 35 - - 35 International 33 - - 33 Fixed income securities: Corporate bonds (a) - 30 - 30 U.S. Treasuries - 3 - 3 Other (b) 28 1 - 29 Total assets in the fair value hierarchy $ 97 $ 35 $ - 132 Total assets measured at net asset value (c) 17 Total fair value of plan assets $ 149 At December 31, 2016 Level 1 Level 2 Level 3 Total Asset Category Interest-bearing cash $ 2 $ - $ - $ 2 Equity securities: U.S. 41 - - 41 International 28 - - 28 Fixed income securities: Corporate bonds (a) - 28 - 28 U.S. Treasuries - 2 - 2 Other (b) 28 - - 28 Total assets in the fair value hierarchy $ 99 $ 30 $ - 129 Total assets measured at net asset value (c) 14 Total fair value of plan assets $ 143 _____________ (a) Substantially all corporate bonds are rated investment grade by a major ratings agency such as Moody’s. (b) Other consists primarily of diversified bond mutual funds. (c) Fair value was measured using the net asset value (NAV) per share as a practical expedient as the investments did not have a readily determinable fair value and are not required to be classified in the fair value hierarchy. The NAV fair value amounts presented here are intended to permit a reconciliation to the total fair value of plan assets. | |
Postretirement Health Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule Of Assumptions Used | Year Ended December 31, 2017 2016 Assumed Health Care Cost Trend Rates – Not Medicare Eligible: Health care cost trend rate assumed for next year (a) 8.00% 5.80% Rate to which the cost trend is expected to decline (the ultimate trend rate) 4.50% 5.00% Year that the rate reaches the ultimate trend rate 2026 2024 Assumed Health Care Cost Trend Rates – Medicare Eligible: Health care cost trend rate assumed for next year (b) 9.40% 5.70% Rate to which the cost trend is expected to decline (the ultimate trend rate) 4.50% 5.00% Year that the rate reaches the ultimate trend rate 2026 2024 (a) 2017 trend rates include weighting for prescription drugs. Comparable rate for 2016 is 6.80%. (b) 2017 trend rates include weighting for prescription drugs. Comparable rate for 2016 is 8.40%. 1-Percentage Point Increase 1-Percentage Point Decrease Sensitivity Analysis of Assumed Health Care Cost Trend Rates: Effect on accumulated postretirement obligation $ 158 $ (131) Effect on postretirement benefits cost 8 (6) |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related-Party Transactions [Abstract] | ||
Schedule Of Related Party Transactions | Amounts payable to (receivable from) members related to income taxes under the tax sharing agreement and reported on our balance sheet consisted of the following: At September 30, 2018 At December 31, 2017 STH Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes payable (receivable) $ 13 $ 3 $ 16 $ (21) $ (5) $ (26) Texas margin taxes payable 16 - 16 21 - 21 Net payable (receivable) $ 29 $ 3 $ 32 $ - $ (5) $ (5) Cash payments made to (received from) members related to income taxes consisted of the following: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 STH EFH Corp. Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes $ 41 $ (19) $ 6 $ 28 $ (102) $ (12) $ (114) Texas margin taxes 21 - - 21 20 - 20 Total payments (receipts) $ 62 $ (19) $ 6 $ 49 $ (82) $ (12) $ (94) | Amounts payable to (receivable from) members related to income taxes under the agreement and reported on our balance sheet consisted of the following: At December 31, 2017 At December 31, 2016 EFH Corp. Texas Transmission Total EFH Corp. Texas Transmission Total Federal income taxes receivable $ (21) $ (5) $ (26) $ (62) $ (18) $ (80) Texas margin taxes payable 21 - 21 20 - 20 Net payable (receivable) $ - $ (5) $ (5) $ (42) $ (18) $ (60) Cash payments made to (received from) members related to income taxes consisted of the following: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 EFH Corp. Texas Transm. Total EFH Corp. Texas Transm. Total EFH Corp. Texas Transm. Total Federal income taxes $ (102) $ (12) $ (114) $ - $ - $ - $ 108 $ 27 $ 135 Texas margin taxes 20 - 20 20 - 20 24 - 24 Total payments (receipts) $ (82) $ (12) $ (94) $ 20 $ - $ 20 $ 132 $ 27 $ 159 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Supplementary Financial Information [Abstract] | ||
Schedule Of Other Income And (Deductions) | Other Income and (Deductions) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Professional fees $ - $ (4) (4) (12) Sempra Acquisition related costs - - (16) - Recoverable Pension and OPEB - non-service costs (a) (13) (8) (40) (23) Non-recoverable pension and OPEB (Note 10) (1) (1) (4) (4) Other, including interest income 1 - 1 4 Total other income and (deductions) - net $ (13) $ (13) $ (63) $ (35) ____________ (a) The prior periods have been adjusted to present non-service costs as a non-operating cost pursuant to ASU 2017-07. See Note 1 for additional information. | Other Income and Deductions Year Ended December 31, 2017 2016 2015 Accretion of fair value adjustment (discount) to regulatory assets due to acquisition accounting $ - $ 1 $ 5 Professional fees (15) (15) (19) Non-recoverable pension and OPEB (Note 9) (5) (2) (9) Interest income 6 2 - Other (1) (1) 1 Total other income and (deductions) - net $ (15) $ (15) $ (22) |
Schedule Of Interest Expense And Related Charges | Interest Expense and Related Charges Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest $ 90 $ 89 $ 268 $ 263 Amortization of debt issuance costs and discounts 2 1 5 2 Less allowance for funds used during construction – capitalized interest portion (3) (3) (9) (8) Total interest expense and related charges $ 89 $ 87 $ 264 $ 257 | Year Ended December 31, 2017 2016 2015 Interest $ 351 $ 341 $ 335 Amortization of debt issuance costs and discounts 3 3 3 Less allowance for funds used during construction – capitalized interest portion (12) (8) (5) Total interest expense and related charges $ 342 $ 336 $ 333 |
Schedule Of Trade Accounts And Other Receivables | Trade Accounts and Other Receivables Trade accounts and other receivables reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Gross trade accounts and other receivables $ 691 $ 638 Allowance for uncollectible accounts (3) (3) Trade accounts receivable – net $ 688 $ 635 | At December 31, 2017 2016 Gross trade accounts and other receivables $ 638 $ 548 Allowance for uncollectible accounts (3) (3) Trade accounts receivable – net $ 635 $ 545 |
Summary of Investments And Other Property | Investments and Other Property Investments and other property reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Assets related to employee benefit plans, including employee savings programs $ 111 $ 111 Land and other investments 10 2 Total investments and other property $ 121 $ 113 | At December 31, 2017 2016 Assets related to employee benefit plans, including employee savings programs $ 111 $ 98 Land 2 2 Total investments and other property $ 113 $ 100 |
Schedule Of Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Total assets in service $ 22,593 $ 21,717 Less accumulated depreciation and amortization 7,497 7,255 Net of accumulated depreciation and amortization 15,096 14,462 Construction work in progress 671 402 Held for future use 15 15 Property, plant and equipment – net $ 15,782 $ 14,879 | Composite Depreciation Rate/ At December 31, Avg. Life at December 31, 2017 2017 2016 Assets in service: Distribution 2.9% / 34.3 years $ 12,467 $ 11,369 Transmission 2.9% / 34.7 years 7,870 7,734 Other assets 7.1% / 14.1 years 1,380 1,131 Total 21,717 20,234 Less accumulated depreciation 7,255 6,836 Net of accumulated depreciation 14,462 13,398 Construction work in progress 402 416 Held for future use 15 15 Property, plant and equipment – net $ 14,879 $ 13,829 |
Schedule Of Intangible Assets | Intangible Assets Intangible assets (other than goodwill) reported on our balance sheet as part of property, plant and equipment consisted of the following: At September 30, 2018 At December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Identifiable intangible assets subject to amortization: Land easements $ 456 $ 99 $ 357 $ 453 $ 96 $ 357 Capitalized software 757 375 382 679 339 340 Total $ 1,213 $ 474 $ 739 $ 1,132 $ 435 $ 697 | At December 31, 2017 At December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Identifiable intangible assets subject to amortization: Land easements $ 453 $ 96 $ 357 $ 491 $ 94 $ 397 Capitalized software 679 339 340 470 326 144 Total $ 1,132 $ 435 $ 697 $ 961 $ 420 $ 541 |
Schedule Of Estimated Aggregate Amortization Expenses | Year Amortization Expense 2018 $ 50 2019 47 2020 45 2021 45 2022 45 | Year Amortization Expense 2018 $ 47 2019 44 2020 43 2021 43 2022 43 |
Schedule Of Employee Benefit Obligations And Other | Employee Benefit Obligations and Other Employee benefit obligations and other reported on our balance sheet consisted of the following: At September 30, At December 31, 2018 2017 Retirement plans and other employee benefits $ 1,973 $ 2,035 Investment tax credits 8 10 Other 65 57 Total employee benefit obligations and other $ 2,046 $ 2,102 | At December 31, 2017 2016 Retirement plans and other employee benefits $ 2,035 $ 2,092 Uncertain tax positions (including accrued interest) - 3 Investment tax credits 10 12 Other 57 61 Total employee benefit obligations and other $ 2,102 $ 2,168 |
Schedule Of Supplemental Cash Flow Information | Supplemental Cash Flow Information Nine Months Ended September 30, 2018 2017 Cash payments (receipts) related to: Interest $ 243 $ 256 Less capitalized interest (9) (8) Interest payments (net of amounts capitalized) $ 234 $ 248 Amount in lieu of income taxes (a): Federal $ 28 $ (114) State 21 20 Total payments (receipts) in lieu of income taxes $ 49 $ (94) Noncash construction expenditures (b) $ 136 $ 103 ____________ (a) See Note 11 for income tax related detail. Represents end-of-period accruals. | Year Ended December 31, 2017 2016 2015 Cash payments related to: Interest $ 345 $ 336 $ 346 Less capitalized interest (12) (8) (5) Interest payments (net of amounts capitalized) $ 333 $ 328 $ 341 Amount in lieu of income taxes: Federal $ (114) $ - $ 135 State 20 20 43 Total payments (refunds) in lieu of income taxes $ (94) $ 20 $ 178 Noncash Sharyland Asset Exchange costs $ 383 $ - $ - Noncash construction expenditures (a) $ 129 $ 122 $ 56 ______________ (a) Represents end-of-period accruals. |
Schedule Of Quarterly Information | 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 935 $ 964 $ 1,068 $ 991 Operating income 160 197 247 184 Net income 73 112 157 77 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 943 $ 948 $ 1,071 $ 958 Operating income 169 196 250 162 Net income 81 110 163 77 |
Business and Significant Acco_3
Business and Significant Accounting Policies (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Nov. 30, 2008 | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2018USD ($)segmententity | Dec. 31, 2017USD ($)entity | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 09, 2018 | Dec. 31, 2004USD ($) | Dec. 31, 2003USD ($) | |
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Number of reportable business segments | segment | 0 | ||||||||||||||||
Number of entities that would possibly be bankrupt | entity | 1 | 1 | |||||||||||||||
Revenues | $ 991 | $ 1,068 | $ 964 | $ 935 | $ 958 | $ 1,071 | $ 948 | $ 943 | |||||||||
Long-lived assets and goodwill impairments | $ 0 | $ 0 | $ 0 | ||||||||||||||
Percentage of equity interest sold in the event of bankruptcy | 19.75% | ||||||||||||||||
Sempra Energy [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Ownership interests acquired | 51.00% | 51.00% | 51.00% | 51.00% | |||||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Alternative revenue program | $ 20 | ||||||||||||||||
Accounting Standards Update 2017-07 [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Reclassification from operation and maintenance expense to other income and (deductions) | $ 8 | $ 23 | 31 | 28 | 28 | ||||||||||||
Increase in provision in lieu of income taxes and decrease in non-operating provision in lieu of income taxes | $ 3 | 9 | $ 11 | $ 10 | $ 10 | ||||||||||||
Accounting Standards Update 2018-02 [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Reclassification from AOCI to membership interests for stranded tax effects | $ 4 | ||||||||||||||||
Oncor Holdings [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Ownership | 80.25% | 80.03% | 80.25% | 80.03% | |||||||||||||
Oncor Holdings [Member] | Oncor | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Ownership interests acquired | 0.22% | ||||||||||||||||
Texas Transmission [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Percentage of membership interest owned by non-controlling owners | 19.75% | 19.75% | 19.75% | 19.75% | |||||||||||||
Bondco | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Principal amount of transition bonds issued | $ 1,300 | $ 1,300 | |||||||||||||||
Sempra Energy [Member] | Oncor | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Ownership interests acquired | 80.03% | ||||||||||||||||
Sales [Member] | TCEH [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Concentration risk percentage | 22.00% | 23.00% | 25.00% | ||||||||||||||
Sales [Member] | Vistra [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Concentration risk percentage | 22.00% | 23.00% | 25.00% | ||||||||||||||
Maximum [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||||||
Business And Significant Accounting Polices [Line Items] | |||||||||||||||||
Alternative revenue program | $ 20 |
EFH Bankruptcy Proceedings an_2
EFH Bankruptcy Proceedings and Change in Indirect Ownership of Oncor (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 09, 2018 | Nov. 27, 2017 | Nov. 09, 2017 | Aug. 15, 2017 | Jul. 28, 2017 | Oct. 30, 2016 | Sep. 30, 2018 | Dec. 31, 2017 | Apr. 23, 2018 | Jul. 07, 2017 |
Bankruptcy [Line Items] | ||||||||||
Regulatory capitalization ratio, debt | 57.50% | 56.30% | 60.00% | |||||||
Regulatory capitalization ratio, equity | 42.50% | 43.70% | 40.00% | |||||||
Cash paid | $ 25 | |||||||||
Texas Holdings Group [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Percentage of membership interest owned by non-controlling owners | 19.75% | |||||||||
Oncor | Sempra Energy [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Purchase price | $ 9,450 | |||||||||
Minimum aggregate capital expenditures | $ 7,500 | |||||||||
Number of days for proportionate share of aggregate equity investment | 60 days | |||||||||
Transaction or transition costs | $ 117 | |||||||||
Ownership interests acquired | 80.03% | |||||||||
Oncor | Oncor Holdings [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Ownership interests acquired | 0.22% | |||||||||
Sempra Energy [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Percent increase or decrease for disinterested directors to approve any budget | 10.00% | 10.00% | ||||||||
Minimum aggregate capital expenditures | $ 7,500 | |||||||||
Transaction or transition costs | $ 0 | |||||||||
Ownership interests acquired | 51.00% | 51.00% | ||||||||
Required time for holding owndership interests | 5 years | 5 years | ||||||||
Percent of savings for bill credits | 90.00% | 90.00% | ||||||||
Period of bill credits | 1 year | |||||||||
Sharyland Merger Agreement [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Purchase price | $ 408 | |||||||||
Cash paid | $ 25 | |||||||||
OMI Agreement [Member] | Oncor | Sempra Energy [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Cash paid | $ 26 | |||||||||
Share price | $ 18.60 | |||||||||
OMI Agreement [Member] | Oncor | Oncor Holdings [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Shares acquired | 1,396,008 | |||||||||
EFH Corp [Member] | Berkshire Hathaway Energy Company (BHE) [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Ownership interests acquired | 80.03% | |||||||||
EFH Corp [Member] | Sempra Energy [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Percent of outstanding equity interests required | 80.03% | |||||||||
Texas Holdings Group [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Amount receivable from related party | $ 129 | |||||||||
Texas Holdings Group [Member] | NEE Merger Agreement [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Percent of outstanding equity interests required | 19.75% | |||||||||
Texas Holdings Group [Member] | TTI Merger Agreement [Member] | ||||||||||
Bankruptcy [Line Items] | ||||||||||
Percent of outstanding equity interests required | 19.75% | |||||||||
Purchase price | $ 2,400 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Millions | Jul. 01, 2018USD ($) | Dec. 22, 2017USD ($) | Nov. 27, 2017USD ($) | Nov. 09, 2017USD ($)miitem | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 08, 2018USD ($) |
Public Utilities, General Disclosures [Line Items] | ||||||||||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% | 35.00% | ||||||
Requested base rate revenue | $ 79 | $ 65 | ||||||||
Decrease in revenue requirement | $ 181 | |||||||||
Annual rate reductions related to reduction in income taxes | 144 | |||||||||
Reduction related to amortization of excess deferred income taxes | 37 | |||||||||
Reduction of income tax expense | 144 | |||||||||
Reduction to income tax expense related to amortization of excess deferred federal income taxes | $ 75 | |||||||||
Increase (decrease) in liability for deferred income taxes | $ 3 | |||||||||
Authorized return on equity | 9.80% | 10.25% | ||||||||
Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Refund of tax rate differential | $ 75 | |||||||||
Sharyland Merger Agreement [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Transmission of assets | $ 383 | |||||||||
Number of assets transferred in circuit miles | mi | 517 | |||||||||
Number of transmission lines transferred | item | 345 | |||||||||
Subsequent Event [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Decrease in revenue requirement | $ 140 |
Provision In Lieu Of Income T_3
Provision In Lieu Of Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% | 35.00% | ||
Re-measurement of liability in lieu of deferred income taxes | $ 1,600 | $ 21 | ||||
Increase (decrease) in liability for deferred income taxes | $ 3 | |||||
Net liability in lieu of deferred income taxes | 1,517 | $ 2,788 | ||||
Uncertain tax positions related to timing of recognition | 3 | $ 3 | ||||
Accrued interest | 0 | 0 | ||||
Benefit (expense) from interest and penalties | $ 0 | $ 0 | $ 0 | |||
Scenario, Plan [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
U.S. federal statutory rate | 21.00% |
Provision In Liew Of Income Tax
Provision In Liew Of Income Taxes (Schedule Of Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Provision In Lieu Of Income Taxes [Abstract] | ||
Deferred tax assets, Employee benefit liabilities | $ 253 | $ 413 |
Deferred tax assets, Regulatory liabilities | 15 | 26 |
Deferred tax assets, Other | 7 | 79 |
Total | 275 | 518 |
Deferred tax liabilities, Property, plant and equipment | 1,551 | 2,892 |
Deferred tax liabilities, Regulatory assets | 240 | 412 |
Deferred Tax Liabilities, Other | 1 | 2 |
Total | 1,792 | 3,306 |
Liability in lieu of deferred income taxes - net | $ 1,517 | $ 2,788 |
Provision In Lieu Of Income T_4
Provision In Lieu Of Income Taxes (Components Of Income Tax Provisions (Benefits)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provision In Lieu Of Income Taxes [Abstract] | |||||
Current: U.S. federal | $ (55) | $ 60 | $ 189 | ||
Current: State | 20 | 20 | 32 | ||
Deferred: U.S. federal | 292 | 181 | 55 | ||
Deferred: State | (13) | ||||
Amortization of investment tax credits | (2) | (2) | (3) | ||
Total reported in operating expenses | $ 54 | $ 134 | 255 | 259 | 260 |
U.S. federal | (5) | (5) | (7) | ||
Deferred federal | 17 | (1) | |||
Total reported in other income and deductions | 12 | (5) | (8) | ||
Total provision in lieu of income taxes | $ 267 | $ 254 | $ 252 |
Provision In Lieu Of Income T_5
Provision In Lieu Of Income Taxes (Schedule Of Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income before provision in lieu of income taxes | $ 686 | $ 685 | $ 684 | ||
Provision in lieu of income taxes at the U.S. federal statutory rate of 35% | 240 | 240 | 239 | ||
Amortization of investment tax credits - net of deferred tax effect | (2) | (2) | (3) | ||
Amortization (under regulatory accounting) of statutory tax rate changes | (1) | (1) | (1) | ||
Impact of federal statutory rate change 35% to 21% | 21 | ||||
Texas margin tax, net of federal tax benefit | 13 | 13 | 13 | ||
Nontaxable gains on benefit plan investments | (4) | ||||
Other, including audit settlements | 4 | 4 | |||
Total provision in lieu of income taxes | $ 267 | $ 254 | $ 252 | ||
Effective rate | 38.90% | 37.10% | 36.80% | ||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% | 35.00% | |
Scenario, Plan [Member] | |||||
U.S. federal statutory rate | 21.00% |
Provision In Lieu Of Income T_6
Provision In Lieu Of Income Taxes (Schedule Of Changes To Uncertain Tax Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provision In Lieu Of Income Taxes [Abstract] | |||
Balance at January 1, excluding interest and penalties | $ 3 | $ 3 | $ 2 |
Additions based on tax positions related to prior years | |||
Reductions based on tax positions related to prior years | (3) | ||
Settlements with taxing authorities, increase | 1 | ||
Balance at December 31, excluding interest and penalties | $ 3 | $ 3 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - customer | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Number of REPS | 90 | |
REP Subsidiary One [Member] | Sales Revenue, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 27.00% | 24.00% |
REP Subsidiary Two [Member] | Sales Revenue, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 22.00% | 19.00% |
Revenues (Disaggregation Of Rev
Revenues (Disaggregation Of Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | $ 835 | $ 2,325 | |||
Revenues collected for pass-through expenses | 260 | 781 | |||
Total operating revenues | 1,095 | 3,106 | $ 3,958 | $ 3,920 | $ 3,878 |
Distribution Base Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | 604 | 1,640 | |||
Transmission Base Revenues (TCOS Revenues) [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | 214 | 637 | |||
Transmission Base Revenues (TCOS Revenues) [Member] | Third-Party Wholesale Customers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | 137 | 403 | |||
Transmission Base Revenues (TCOS Revenues) [Member] | REPS Serving Oncor Distribution Customers, Through TCRF [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | 77 | 234 | |||
Other Miscellaneous Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues contributing to earnings | 17 | 48 | |||
TCRF - Third-party Wholesale Transmission Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues collected for pass-through expenses | 237 | 719 | |||
EECRF And Other Regulatory Charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues collected for pass-through expenses | $ 23 | $ 62 |
Regulatory Assets And Liabili_3
Regulatory Assets And Liabilities (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / mo | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) | |
Regulatory Assets And Liabilities [Line Items] | |||
Expected surcharge | $ | $ 1,023 | ||
Recovery period | 11 years | ||
Net regulatory asset | $ | $ (627) | $ (913) | $ 1,118 |
Residential Retail Customer [Member] | |||
Regulatory Assets And Liabilities [Line Items] | |||
Cost recovery factor | 2.19 | ||
Minimum [Member] | Non-Residential Retail Customer [Member] | |||
Regulatory Assets And Liabilities [Line Items] | |||
Cost recovery factor | 2.39 | ||
Maximum [Member] | Non-Residential Retail Customer [Member] | |||
Regulatory Assets And Liabilities [Line Items] | |||
Cost recovery factor | 5.15 | ||
Deferred AMS Costs [Member] | |||
Regulatory Assets And Liabilities [Line Items] | |||
Recovery period | 10 years |
Regulatory Assets And Liabili_4
Regulatory Assets And Liabilities (Components Of Regulatory Assets And Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Regulatory Assets And Liabilities [Line Items] | |||||
Carrying Amount, Regulatory Assets | $ 1,850 | $ 2,180 | $ 1,974 | ||
Carrying Amount, Regulatory Liabilities | 2,763 | 2,807 | 856 | ||
Net regulatory assets (liabilities) | $ (913) | $ (627) | 1,118 | ||
Estimated Net Removal Costs [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Lives of related assets | Lives of related assets | |||
Carrying Amount, Regulatory Liabilities | $ 1,006 | $ 954 | 819 | ||
Excess Deferred Income Taxes [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Primarily over lives of related assets | ||||
Carrying Amount, Regulatory Liabilities | $ 1,587 | ||||
Protected Excess Deferred Taxes [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Various | ||||
Carrying Amount, Regulatory Liabilities | $ 1,595 | 3 | |||
Unprotected Excess Deferred Taxes [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Various | ||||
Carrying Amount, Regulatory Liabilities | $ 194 | ||||
Federal Income Taxes - Over-collected Due To TCJA Rate Change [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 1 year or less | ||||
Carrying Amount, Regulatory Liabilities | $ 75 | ||||
Over-Recovered Wholesale Transmission Service Expense [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 1 year or less | 1 year or less | [1] | ||
Carrying Amount, Regulatory Liabilities | $ 73 | $ 47 | [1] | 10 | [1] |
Other Regulatory Liabilities [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Various | Various | |||
Carrying Amount, Regulatory Liabilities | $ 22 | $ 17 | 24 | ||
Employee Retirement Costs Being Amortized [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 10 years | 10 years | |||
Carrying Amount, Regulatory Assets | $ 305 | $ 331 | 23 | ||
Unrecovered Employee Retirement Costs Incurred Since The Last Rate Review Period [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | To be determined | To be determined | [2] | ||
Carrying Amount, Regulatory Assets | $ 30 | $ 30 | [2] | 327 | [2] |
Employee Retirement Liability [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | To be determined | To be determined | [1],[2],[3] | ||
Carrying Amount, Regulatory Assets | $ 800 | $ 854 | [1],[2],[3] | 849 | [1],[2],[3] |
Employee Retirement Plans - Non-service Costs [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Lives of related assets | ||||
Carrying Amount, Regulatory Assets | $ 33 | ||||
Self-Insurance Reserve (Primarily Storm Recovery Costs) Being Amortized [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 10 years | 10 years | |||
Carrying Amount, Regulatory Assets | $ 362 | $ 394 | 64 | ||
Unrecovered Self-Insurance Reserve Incurred Since The Last Rate Review Period [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | To be determined | To be determined | [2] | ||
Carrying Amount, Regulatory Assets | $ 53 | $ 49 | [2] | 367 | [2] |
Securities Reacquisition Costs [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Lives of related debt | Lives of related debt | |||
Carrying Amount, Regulatory Assets | $ 10 | $ 12 | 13 | ||
Deferred Conventional Meter And Metering Facilities Depreciation [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 3 years | 3 years | |||
Carrying Amount, Regulatory Assets | $ 42 | $ 57 | 78 | ||
Under-recovered AMS Costs [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 10 years | 10 years | |||
Carrying Amount, Regulatory Assets | $ 190 | $ 206 | 209 | ||
Unprotected Excess Deferred Taxes [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Carrying Amount, Regulatory Assets | $ 197 | ||||
Energy Efficiency Performance Bonus [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | 1 year or less | 1 year or less | [1] | ||
Carrying Amount, Regulatory Assets | $ 3 | $ 12 | [1] | 10 | [1] |
Other Regulatory Assets [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Remaining Rate Recovery/Amortization Period | Various | Various | |||
Carrying Amount, Regulatory Assets | $ 22 | $ 38 | $ 34 | ||
[1] | Not earning a return in the regulatory rate-setting process. | ||||
[2] | Recovery is specifically authorized by statute or by the PUCT, subject to reasonableness review. | ||||
[3] | Represents unfunded liabilities recorded in accordance with pension and OPEB accounting standards. |
Short-Term Borrowings (Narrativ
Short-Term Borrowings (Narrative) (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2017USD ($)item | Sep. 30, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||||
Outstanding borrowing under the revolving credit facility | $ 950,000,000 | $ 789,000,000 | ||
Outstanding borrowing, interest rate | 2.62% | 1.72% | ||
Letters of credit | $ 9,000,000 | $ 7,000,000 | ||
Commitment fee | 0.125% | |||
Borrowing capacity available under the credit facility | $ 2,000,000,000 | $ 1,041,000,000 | $ 1,204,000,000 | |
Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee | 0.225% | 0.225% | ||
Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee | 0.075% | 0.075% | ||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding borrowing under the revolving credit facility | $ 9,000,000 | |||
Outstanding borrowing, interest rate | 1.325% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | ||
Number of revolving credit facilities extension options | 2 | 2 | ||
Extension period for revolving line of credit | 1 year | 1 year | ||
Credit facility, term | 5 years | |||
Expiration of revolving credit facility | Nov. 1, 2022 | Nov. 1, 2022 | ||
Outstanding borrowing under the revolving credit facility | $ 0 | |||
Commitment fee | 0.10% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Additional increase in borrowing capacity amount | $ 100,000,000 | $ 400,000,000 | ||
Debt-to-capitalization ratio | 1 | 1 | ||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Additional increase in borrowing capacity amount | $ 400,000,000 | $ 100,000,000 | ||
Debt-to-capitalization ratio | 0.65 | 0.65 | ||
Commercial Paper [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding borrowing under the revolving credit facility | $ 1,099,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 1.00% | 1.125% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 1.50% | 1.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 0.875% | 0.875% | ||
Federal Funds Effective Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 0.50% | 0.50% | ||
One-Month London Interbank Offered Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 1.00% | 1.00% | ||
One-Month London Interbank Offered Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 0.50% | 0.50% | ||
One-Month London Interbank Offered Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Spread over variable rate | 0.00% | 0.00% |
Short-Term Borrowings (Schedule
Short-Term Borrowings (Schedule Of Short-Term Borrowings) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | |||
Total borrowing capacity | $ 2,000,000,000 | $ 1,041,000,000 | $ 1,204,000,000 |
Outstanding | $ (950,000,000) | $ (789,000,000) | |
Available unused credit | 892,000,000 | ||
Commercial Paper [Member] | |||
Short-term Debt [Line Items] | |||
Outstanding | $ (1,099,000,000) | ||
Interest Rate | 2.45% | ||
Revolving Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Outstanding | $ 0 | ||
Letter of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Outstanding | $ (9,000,000) | ||
Interest Rate | 1.20% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2016 | Mar. 31, 2015 | |
Long-Term Debt [Line Items] | |||||||||
Repayments of long-term debt | $ 825,000,000 | $ 324,000,000 | $ 324,000,000 | $ 41,000,000 | $ 639,000,000 | ||||
Proceeds from sale of Notes | $ 791,000,000 | ||||||||
Redemption percentage | 100.00% | ||||||||
Percentage of fair value of cost of property additions certified to the Deed of Trust collateral agent | 85.00% | ||||||||
Available bond credits | $ 3,038,000,000 | ||||||||
Future debt subject to property additions to the Deed of Trust | 2,458,000,000 | ||||||||
Estimated fair value of our long-term debt including current maturities | $ 6,731,000,000 | 7,153,000,000 | $ 6,751,000,000 | ||||||
Carrying amount | $ 6,086,000,000 | $ 6,117,000,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 1.00% | 1.125% | |||||||
Federal Funds Effective Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.50% | 0.50% | |||||||
One-Month London Interbank Offered Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 1.00% | 1.00% | |||||||
6.80% Fixed Senior Notes Due September 1, 2018 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Repayments of long-term debt | $ 550,000,000 | ||||||||
Interest percentage | 6.80% | 6.80% | 6.80% | ||||||
Due date | Sep. 1, 2018 | Sep. 1, 2018 | |||||||
Term Loan Credit Agreement Due No Later Than March 26, 2019 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Repayments of long-term debt | $ 275,000,000 | ||||||||
Interest percentage | 2.452% | ||||||||
Due date | Mar. 26, 2019 | Mar. 26, 2019 | |||||||
Loan term | 18 months | ||||||||
Senior debt to capitalization ratio | 0.65 | ||||||||
Excess of principal amount for default | $ 100,000,000 | ||||||||
Judgment for payment of money on term loan | $ 50,000,000 | ||||||||
Time alloted for excess debt default to be discharged | 60 days | ||||||||
Term Loan Credit Agreement Due No Later Than March 26, 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.90% | ||||||||
Term Loan Credit Agreement Due No Later Than March 26, 2019 [Member] | Federal Funds Effective Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.50% | ||||||||
Term Loan Credit Agreement Due No Later Than March 26, 2019 [Member] | One-Month London Interbank Offered Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 1.00% | ||||||||
3.70% Fixed Senior Notes Due November 15, 2028 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Interest percentage | 3.70% | ||||||||
Due date | Nov. 15, 2028 | ||||||||
Increase in basis points per annum | 0.125% | ||||||||
4.10% Fixed Senior Notes Due November 15, 2048 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Interest percentage | 4.10% | ||||||||
Due date | Nov. 15, 2048 | ||||||||
Increase in basis points per annum | 0.15% | ||||||||
CP Progam [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Debt principal amount | $ 131,000,000 | ||||||||
5.000% Fixed Senior Notes Due September 30, 2017 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Repayments of long-term debt | $ 324,000,000 | ||||||||
Interest percentage | 5.00% | 5.00% | |||||||
Due date | Sep. 30, 2017 | ||||||||
Additional 2045 Notes [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Debt principal amount | $ 175,000,000 | $ 375,000,000 | |||||||
Due date | Oct. 1, 2044 | ||||||||
Proceeds from sale of Notes | $ 185,000,000 | ||||||||
Percentage of principal amount plus accrued and unpaid interest and make-whole premium | 100.00% | ||||||||
Transition Bond [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Repayments of long-term debt | $ 41,000,000 | ||||||||
3.80% Fixed Senior Notes Due September 30, 2047 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Interest percentage | 3.80% | 3.80% | 3.80% | ||||||
Due date | Sep. 30, 2047 | Sep. 30, 2047 | |||||||
Proceeds from sale of Notes | $ 321,000,000 | ||||||||
Percentage of principal amount plus accrued and unpaid interest and make-whole premium | 100.00% | ||||||||
Number of days after issuance date for exchange offer completion | 315 days | ||||||||
Number of days after shelf registration filing obligation for filing to be effective | 270 days | ||||||||
Increase in basis points per annum | 0.50% | ||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.875% | 0.875% | |||||||
Minimum [Member] | One-Month London Interbank Offered Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.00% | 0.00% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 1.50% | 1.50% | |||||||
Maximum [Member] | One-Month London Interbank Offered Rate [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Spread over variable rate | 0.50% | 0.50% | |||||||
Secured Debt [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Percentage of fair value of cost of property additions certified to the Deed of Trust collateral agent | 85.00% | ||||||||
Available bond credits | $ 3,588,000,000 | ||||||||
Future debt subject to property additions to the Deed of Trust | $ 2,136,000,000 |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 5,876 | $ 5,875 | |
Total long-term debt | $ 6,126 | 6,151 | 5,875 |
Unamortized discount and debt issuance costs | (40) | (34) | (36) |
Less amount due currently | (250) | (550) | (324) |
Long-term debt, less amounts due currently | 5,836 | $ 5,567 | 5,515 |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 6,126 | ||
5.000% Fixed Senior Notes Due September 30, 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 324 | ||
Interest percentage | 5.00% | 5.00% | |
Due date | Sep. 30, 2017 | ||
6.80% Fixed Senior Notes Due September 1, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 550 | $ 550 | |
Interest percentage | 6.80% | 6.80% | 6.80% |
Due date | Sep. 1, 2018 | Sep. 1, 2018 | |
2.15% Fixed Senior Notes Due June 1, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 250 | $ 250 | |
Interest percentage | 2.15% | 2.15% | 2.15% |
Due date | Jun. 1, 2019 | Jun. 1, 2019 | |
2.15% Fixed Senior Notes Due June 1, 2019 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 250 | ||
5.75% Fixed Senior Notes Due September 30, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 126 | $ 126 | |
Interest percentage | 5.75% | 5.75% | 5.75% |
Due date | Sep. 30, 2020 | Sep. 30, 2020 | |
5.75% Fixed Senior Notes Due September 30, 2020 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 126 | ||
4.10% Fixed Senior Notes Due June 1, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 400 | $ 400 | |
Interest percentage | 4.10% | 4.10% | 4.10% |
Due date | Jun. 1, 2022 | Jun. 1, 2022 | |
4.10% Fixed Senior Notes Due June 1, 2022 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 400 | ||
7.00% Fixed Debentures Due September 1, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 800 | $ 800 | |
Interest percentage | 7.00% | 7.00% | 7.00% |
Due date | Sep. 1, 2022 | Sep. 1, 2022 | |
7.00% Fixed Debentures Due September 1, 2022 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 800 | ||
2.95% Fixed Senior Notes Due April 1, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 350 | $ 350 | |
Interest percentage | 2.95% | 2.95% | 2.95% |
Due date | Apr. 1, 2025 | Apr. 1, 2025 | |
2.95% Fixed Senior Notes Due April 1, 2025 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 350 | ||
3.70% Fixed Senior Notes Due November 15, 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Interest percentage | 3.70% | ||
Due date | Nov. 15, 2028 | ||
3.70% Fixed Senior Notes Due November 15, 2028 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 350 | ||
7.00% Fixed Senior Notes Due May 1, 2032 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 500 | $ 500 | |
Interest percentage | 7.00% | 7.00% | 7.00% |
Due date | May 1, 2032 | May 1, 2032 | |
7.00% Fixed Senior Notes Due May 1, 2032 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 500 | ||
7.25% Fixed Senior Notes Due January 15, 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 350 | $ 350 | |
Interest percentage | 7.25% | 7.25% | 7.25% |
Due date | Jan. 15, 2033 | Jan. 15, 2033 | |
7.25% Fixed Senior Notes Due January 15, 2033 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 350 | ||
7.50% Fixed Senior Notes Due September 1, 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 300 | $ 300 | |
Interest percentage | 7.50% | 7.50% | 7.50% |
Due date | Sep. 1, 2038 | Sep. 1, 2038 | |
7.50% Fixed Senior Notes Due September 1, 2038 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 300 | ||
5.25% Fixed Senior Notes Due September 30, 2040 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 475 | $ 475 | |
Interest percentage | 5.25% | 5.25% | 5.25% |
Due date | Sep. 30, 2040 | Sep. 30, 2040 | |
5.25% Fixed Senior Notes Due September 30, 2040 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 475 | ||
4.55% Fixed Senior Notes Due December 1, 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 400 | $ 400 | |
Interest percentage | 4.55% | 4.55% | 4.55% |
Due date | Dec. 1, 2041 | Dec. 1, 2041 | |
4.55% Fixed Senior Notes Due December 1, 2041 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 400 | ||
5.30% Fixed Senior Notes Due June 1, 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 500 | $ 500 | |
Interest percentage | 5.30% | 5.30% | 5.30% |
Due date | Jun. 1, 2042 | Jun. 1, 2042 | |
5.30% Fixed Senior Notes Due June 1, 2042 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 500 | ||
3.75% Fixed Senior Notes Due April 1, 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 550 | $ 550 | |
Interest percentage | 3.75% | 3.75% | 3.75% |
Due date | Apr. 1, 2045 | Apr. 1, 2045 | |
3.75% Fixed Senior Notes Due April 1, 2045 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 550 | ||
3.80% Fixed Senior Notes Due September 30, 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 325 | ||
Interest percentage | 3.80% | 3.80% | 3.80% |
Due date | Sep. 30, 2047 | Sep. 30, 2047 | |
3.80% Fixed Senior Notes Due September 30, 2047 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 325 | ||
4.10% Fixed Senior Notes Due November 15, 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Interest percentage | 4.10% | ||
Due date | Nov. 15, 2048 | ||
4.10% Fixed Senior Notes Due November 15, 2048 [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt | $ 450 | ||
Term Loan Credit Agreement Due No Later Than March 26, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Term loan | $ 275 | ||
Interest percentage | 2.452% | ||
Due date | Mar. 26, 2019 | Mar. 26, 2019 |
Long-Term Debt (Schedule Of L_2
Long-Term Debt (Schedule Of Long-Term Debt Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Term Debt [Abstract] | |||
2,018 | $ 550 | ||
2,019 | 525 | ||
2,020 | 126 | ||
2,022 | 1,200 | ||
Thereafter | 3,750 | ||
Unamortized discount and debt issuance costs | $ (40) | (34) | $ (36) |
Total | $ 6,117 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |||
Rent expenses | $ 27 | $ 9 | $ 8 |
2018 required efficiency spending amount | $ 50 | ||
Percentage of full time employees represented by labor union | 19.00% | ||
Expiration date of collective bargaining agreement | Oct. 25, 2018 |
Commitments And Contingencies_3
Commitments And Contingencies (Schedule Of Future Miinimum Lease Payments Under Operating Leases) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies [Abstract] | |
2,018 | $ 32 |
2,019 | 21 |
2,020 | 14 |
2,021 | 11 |
2,022 | 10 |
Thereafter | 1 |
Total future minimum lease payments | $ 89 |
Membership Interests (Narrative
Membership Interests (Narrative) (Details) - USD ($) $ in Millions | Nov. 27, 2017 | Oct. 25, 2017 | Nov. 30, 2018 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||||
Cash available for distribution under the capital structure restriction | $ 219 | |||||||
Regulatory capitalization ratio, debt | 57.50% | 56.30% | 60.00% | |||||
Regulatory capitalization ratio, equity | 42.50% | 43.70% | 40.00% | |||||
Regulatory capitalization ratio, debt | 59.40% | |||||||
Regulatory capitalization ratio, equity | 40.60% | |||||||
Members contribution | $ 144 | $ 144 | ||||||
Contingent equity distribution | $ 250 | $ 30 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Members contribution | $ 140 | |||||||
Contingent equity distribution | $ 180 |
Membership Interests (Schedule
Membership Interests (Schedule Of Changes To Membership Interests) (Details) - USD ($) $ in Millions | Oct. 25, 2017 | Apr. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Balance | $ 7,820 | $ 7,711 | $ 7,903 | $ 7,711 | $ 7,711 | |||||||||||
Net income | $ 194 | 77 | $ 157 | $ 112 | 73 | $ 77 | $ 163 | $ 110 | $ 81 | 426 | 343 | 419 | $ 431 | $ 432 | ||
Distributions | $ (32) | (30) | (237) | (237) | (230) | (436) | ||||||||||
Capital contributions | $ 144 | 144 | ||||||||||||||
Net effects of cash flow hedges (net of tax) | 2 | 1 | 2 | 2 | 2 | |||||||||||
Defined benefit pension plans (net of tax) | 1 | 1 | 2 | 2 | 8 | $ (8) | ||||||||||
Balance | 8,447 | 7,903 | 7,820 | 7,711 | 8,447 | 7,820 | 7,903 | 7,711 | ||||||||
Capital Accounts [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Balance | 7,928 | 7,822 | 8,004 | 7,822 | 7,822 | |||||||||||
Net income | 426 | 343 | ||||||||||||||
Distributions | (30) | (237) | ||||||||||||||
Capital contributions | 144 | |||||||||||||||
Net effects of cash flow hedges (net of tax) | ||||||||||||||||
Defined benefit pension plans (net of tax) | ||||||||||||||||
Balance | 8,544 | 8,004 | 7,928 | 7,822 | 8,544 | 7,928 | 8,004 | 7,822 | ||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Balance | (108) | $ (111) | (101) | (111) | (111) | |||||||||||
Net income | ||||||||||||||||
Distributions | ||||||||||||||||
Capital contributions | ||||||||||||||||
Net effects of cash flow hedges (net of tax) | 2 | 1 | ||||||||||||||
Defined benefit pension plans (net of tax) | 2 | 2 | ||||||||||||||
Balance | $ (97) | $ (101) | $ (108) | $ (111) | $ (97) | $ (108) | $ (101) | $ (111) |
Membership Interests (Schedul_2
Membership Interests (Schedule Of Distributions Paid) (Details) - USD ($) $ in Millions | Oct. 25, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Dividends Payable [Line Items] | ||||||
Amount | $ 32 | $ 30 | $ 237 | $ 237 | $ 230 | $ 436 |
Payment One FY 2017 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Jul. 26, 2017 | |||||
Payment Date | Aug. 1, 2017 | |||||
Amount | $ 65 | |||||
Payment Two FY 2017 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Apr. 26, 2017 | |||||
Payment Date | Apr. 27, 2017 | |||||
Amount | $ 86 | |||||
Payment Three FY 2017 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Mar. 22, 2017 | |||||
Payment Date | Mar. 24, 2017 | |||||
Amount | $ 86 | |||||
Payment One FY 2016 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Oct. 26, 2016 | |||||
Payment Date | Oct. 27, 2016 | |||||
Amount | $ 41 | |||||
Payment Two FY 2016 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Jul. 27, 2016 | |||||
Payment Date | Aug. 11, 2016 | |||||
Amount | $ 68 | |||||
Payment Three FY 2016 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Apr. 27, 2016 | |||||
Payment Date | May 11, 2016 | |||||
Amount | $ 65 | |||||
Payment Four FY 2016 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declaration Date | Feb. 24, 2016 | |||||
Payment Date | Feb. 25, 2016 | |||||
Amount | $ 56 |
Membership Interests (Schedul_3
Membership Interests (Schedule Of Changes To Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | $ (101) | $ (111) | $ (111) | $ (113) | $ (107) |
Balance at end of period | (97) | (101) | (111) | (113) | |
Cash Flow Hedges - Interest Rate Swap [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | (18) | (20) | (20) | (22) | (24) |
Defined benefit pension plans (net of tax) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges | 2 | 1 | 2 | 2 | 2 |
Balance at end of period | (16) | (19) | (18) | (20) | (22) |
Defined Benefit Pension and OPEB Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | (83) | (91) | (91) | (91) | (83) |
Defined benefit pension plans (net of tax) | 2 | 2 | 8 | (8) | |
Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges | |||||
Balance at end of period | (81) | (89) | (83) | (91) | (91) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | (101) | (111) | (111) | (113) | (107) |
Defined benefit pension plans (net of tax) | 2 | 2 | 8 | (8) | |
Amounts reclassified from accumulated other comprehensive income (loss) and reported in interest expense and related charges | 2 | 1 | 2 | 2 | 2 |
Balance at end of period | $ (97) | $ (108) | $ (101) | $ (111) | $ (113) |
Pension And OPEB Plans (Narrati
Pension And OPEB Plans (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Regulatory assets | $ 1,850 | $ 1,850 | $ 2,180 | $ 1,974 | ||||
Earning period | 3 years | |||||||
Rolling period | 4 years | |||||||
Percentage of gains and losses | 25.00% | |||||||
Second pool representation of total investments, percentage | 31.00% | |||||||
Cash contributions | $ 180 | 35 | $ 79 | |||||
Vistra [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Unfunded liability | $ 111 | |||||||
Oncor Retirement Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of corporate bonds | item | 1,029 | |||||||
Discount rate | 3.53% | |||||||
Expected return on plan assets | 5.13% | |||||||
Pension And OPEB [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Regulatory assets | $ 1,215 | 1,199 | ||||||
Vistra Retirement Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate | 3.72% | |||||||
Expected return on plan assets | 4.78% | |||||||
Defined Benefit Pension Plans [Member] | Scenario, Forecast [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Amortization of net loss | $ 45 | |||||||
Amortization of prior service cost | 0 | |||||||
Defined Benefit Pension Plans [Member] | Scenario, Forecast [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Amortization of net loss | 4 | |||||||
Pension Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Unfunded liability | (900) | (1,020) | ||||||
Expected funding, 2018 | 82 | |||||||
Expected funding, 2018 to 2022 | 556 | |||||||
Amortization of net loss | (12) | $ (11) | $ (36) | $ (33) | $ (45) | $ (41) | $ (63) | |
Discount rate | 4.05% | 4.30% | 3.96% | |||||
Expected return on plan assets | 5.17% | 5.54% | 5.26% | |||||
Cash contributions | 62 | $ 149 | $ 4 | $ 54 | ||||
Additional cash contributions | 20 | 20 | ||||||
Additional cash contributions, next five years | 480 | |||||||
OPEB Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Unfunded liability | $ (1,049) | (973) | ||||||
Number of corporate bonds | item | 391 | |||||||
Expected funding, 2018 | $ 35 | |||||||
Expected funding, 2018 to 2022 | 178 | |||||||
Amortization of net loss | (14) | (8) | (41) | (24) | (32) | (35) | (33) | |
Amortization of prior service cost | (8) | $ (5) | $ (21) | $ (15) | $ (20) | $ (20) | $ (20) | |
Discount rate | 3.73% | 4.35% | 4.60% | 4.23% | ||||
Expected return on plan assets | 6.20% | 6.10% | 6.30% | 6.65% | ||||
Cash contributions | $ 31 | $ 31 | $ 31 | $ 25 | ||||
Additional cash contributions | $ 4 | 4 | ||||||
Additional cash contributions, next five years | $ 175 | |||||||
OPEB Plan [Member] | Scenario, Forecast [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Amortization of net loss | 56 | |||||||
Amortization of prior service cost | 30 | |||||||
OPEB Plan [Member] | Scenario, Forecast [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Amortization of net loss | 1 | |||||||
Amortization of prior service cost | $ 0 | |||||||
Oncor Cash Balance Formula Retirement Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Percentage of employee's contribution match by employer | 100.00% | |||||||
Percentage of employee's contribution matched 100% by employer | 6.00% | |||||||
Oncor Traditional Retirement Plan Formula Retirement Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Percentage of employee's contribution match by employer | 75.00% | |||||||
Percentage of employee's contribution matched 100% by employer | 6.00% | |||||||
Thrift Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Cash contributions | $ 17 | $ 15 | $ 14 |
Pension And OPEB Plans (Schedul
Pension And OPEB Plans (Schedule Of Pension And OPEB Plan Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net costs | $ 36 | $ 35 | $ 110 | $ 107 | $ 143 | $ 138 | $ 157 |
Less amounts deferred principally as property or a regulatory asset | (17) | (25) | (52) | (76) | (98) | (100) | (113) |
Net amounts recognized as expense | 19 | 10 | 58 | 31 | 45 | 38 | 44 |
Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 7 | 6 | 21 | 18 | 24 | 23 | 25 |
Interest cost | 29 | 32 | 89 | 98 | 131 | 134 | 131 |
Expected return on assets | (29) | (28) | (89) | (86) | (115) | (122) | (115) |
Amortization of net loss | 12 | 11 | 36 | 33 | 45 | 41 | 63 |
Net costs | 19 | 21 | 57 | 63 | 85 | 76 | 104 |
Net amounts recognized as expense | 29 | 76 | 78 | ||||
OPEB Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 2 | 1 | 6 | 5 | 7 | 7 | 7 |
Interest cost | 11 | 12 | 33 | 36 | 47 | 49 | 43 |
Expected return on assets | (2) | (2) | (6) | (6) | (8) | (9) | (10) |
Amortization of prior service cost | (8) | (5) | (21) | (15) | (20) | (20) | (20) |
Amortization of net loss | 14 | 8 | 41 | 24 | 32 | 35 | 33 |
Net costs | $ 17 | $ 14 | $ 53 | $ 44 | 58 | 62 | 53 |
Net amounts recognized as expense | $ 107 | $ 57 | $ 79 |
Pension And OPEB Plans (Sched_2
Pension And OPEB Plans (Schedule Of Detailed Pension And OPEB Benefit Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of net OPEB costs: | |||||||
Net costs | $ 36 | $ 35 | $ 110 | $ 107 | $ 143 | $ 138 | $ 157 |
Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: | |||||||
Net amounts recognized as expense | 19 | 10 | 58 | 31 | $ 45 | $ 38 | $ 44 |
Pension Plan [Member] | |||||||
Assumptions Used to Determine Net Periodic Pension and OPEB Costs: | |||||||
Discount rate | 4.05% | 4.30% | 3.96% | ||||
Expected return on plan assets | 5.17% | 5.54% | 5.26% | ||||
Rate of compensation increase | 3.33% | 3.29% | 3.29% | ||||
Components of net OPEB costs: | |||||||
Service cost | 7 | 6 | 21 | 18 | $ 24 | $ 23 | $ 25 |
Interest cost | 29 | 32 | 89 | 98 | 131 | 134 | 131 |
Expected return on assets | (29) | (28) | (89) | (86) | (115) | (122) | (115) |
Amortization of net loss | 12 | 11 | 36 | 33 | 45 | 41 | 63 |
Net costs | 19 | 21 | $ 57 | 63 | 85 | 76 | 104 |
Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: | |||||||
Net loss (gain) | (11) | 41 | 37 | ||||
Amortization of net loss | (45) | (41) | (63) | ||||
Plan amendments | |||||||
Total recognized as regulatory assets or other comprehensive income | (56) | (26) | |||||
Net amounts recognized as expense | $ 29 | $ 76 | $ 78 | ||||
OPEB Plan [Member] | |||||||
Assumptions Used to Determine Net Periodic Pension and OPEB Costs: | |||||||
Discount rate | 3.73% | 4.35% | 4.60% | 4.23% | |||
Expected return on plan assets | 6.20% | 6.10% | 6.30% | 6.65% | |||
Components of net OPEB costs: | |||||||
Service cost | 2 | 1 | $ 6 | 5 | $ 7 | $ 7 | $ 7 |
Interest cost | 11 | 12 | 33 | 36 | 47 | 49 | 43 |
Expected return on assets | (2) | (2) | (6) | (6) | (8) | (9) | (10) |
Amortization of prior service cost (credit) | (8) | (5) | (21) | (15) | (20) | (20) | (20) |
Amortization of net loss | 14 | 8 | 41 | 24 | 32 | 35 | 33 |
Net costs | $ 17 | $ 14 | $ 53 | $ 44 | 58 | 62 | 53 |
Other Changes in Plan Assets and Benefit Obligations Recognized as Regulatory Assets or in Other Comprehensive Income: | |||||||
Net loss (gain) | 139 | 10 | 39 | ||||
Amortization of net loss | (32) | (35) | (33) | ||||
Plan amendments | (78) | ||||||
Amortization of prior service cost (credit) | 20 | 20 | 20 | ||||
Total recognized as regulatory assets or other comprehensive income | 49 | (5) | 26 | ||||
Net amounts recognized as expense | $ 107 | $ 57 | $ 79 |
Pension And OPEB Plans (Assumpt
Pension And OPEB Plans (Assumptions Used To Determine Benefit Obligations) (Details) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.54% | 4.05% | 4.30% |
Rate of compensation increase | 4.46% | 3.33% | 3.29% |
OPEB Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.73% | 4.35% | 4.60% |
Pension And OPEB Plans (Change
Pension And OPEB Plans (Change In Project Benefit Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Projected benefit obligation at beginning of year | $ 3,500 | $ 3,307 | $ 3,307 | $ 3,201 | |||
Service cost | $ 7 | $ 6 | 21 | 18 | 24 | 23 | $ 25 |
Interest cost | 29 | 32 | 89 | 98 | 131 | 134 | 131 |
Participant contributions | |||||||
Assumption of liabilities | |||||||
Plan amendments | |||||||
Actuarial (gain) loss | 201 | 106 | |||||
Benefits paid | (163) | (157) | |||||
Projected benefit obligation at end of year | 3,500 | 3,307 | 3,201 | ||||
Accumulated benefit obligation at end of year | 3,387 | 3,213 | |||||
OPEB Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Projected benefit obligation at beginning of year | 1,198 | 1,116 | 1,116 | 1,088 | |||
Service cost | 2 | 1 | 6 | 5 | 7 | 7 | 7 |
Interest cost | $ 11 | $ 12 | $ 33 | $ 36 | 47 | 49 | 43 |
Participant contributions | 19 | 17 | |||||
Assumption of liabilities | 7 | ||||||
Plan amendments | (78) | ||||||
Actuarial (gain) loss | 154 | 10 | |||||
Benefits paid | (67) | (62) | |||||
Projected benefit obligation at end of year | 1,198 | 1,116 | $ 1,088 | ||||
Accumulated benefit obligation at end of year |
Pension And OPEB Plans (Chang_2
Pension And OPEB Plans (Change In Plan Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | $ 180 | $ 35 | $ 79 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of assets at beginning of year | $ 2,600 | 2,287 | 2,252 | |
Actual return (loss) on assets | 327 | 188 | ||
Employer contributions | 62 | 149 | 4 | 54 |
Assets related to assumed liabilies | ||||
Participant contributions | ||||
Benefits paid | (163) | (157) | ||
Fair value of assets at end of year | 2,600 | 2,287 | 2,252 | |
OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of assets at beginning of year | 149 | 143 | 141 | |
Actual return (loss) on assets | 23 | 9 | ||
Employer contributions | $ 31 | 31 | 31 | 25 |
Assets related to assumed liabilies | 7 | |||
Participant contributions | 19 | 17 | ||
Benefits paid | (67) | (62) | ||
Fair value of assets at end of year | $ 149 | $ 143 | $ 141 |
Pension And OPEB Plans (Funded
Pension And OPEB Plans (Funded Status) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | $ (3,500) | $ (3,307) | $ (3,201) |
Fair value of assets at end of year | 2,600 | 2,287 | 2,252 |
Funded status at end of year | (900) | (1,020) | |
OPEB Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | (1,198) | (1,116) | (1,088) |
Fair value of assets at end of year | 149 | 143 | $ 141 |
Funded status at end of year | $ (1,049) | $ (973) |
Pension And OPEB Plans (Amounts
Pension And OPEB Plans (Amounts Recognized In Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Net regulatory asset recognized | $ 111 | $ 111 | $ 98 | ||
Accumulated other comprehensive net loss | $ (97) | (101) | (111) | $ (113) | $ (107) |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other current liabilities | (4) | (4) | |||
Other noncurrent liabilities | (896) | (1,016) | |||
Net liability recognized | (900) | (1,020) | |||
Net loss | 538 | 583 | |||
Net regulatory asset recognized | 538 | 583 | |||
Accumulated other comprehensive net loss | 124 | 136 | |||
OPEB Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other current liabilities | (12) | ||||
Other noncurrent liabilities | (1,037) | (973) | |||
Net liability recognized | (1,049) | (973) | |||
Net loss | 402 | 296 | |||
Prior service cost (credit) | (86) | (30) | |||
Net regulatory asset recognized | 316 | 266 | |||
Accumulated other comprehensive net loss | $ 3 | $ 4 |
Pension And OPEB Plans (Sched_3
Pension And OPEB Plans (Schedule Of Assumed Health Care Cost Trend Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Effect on accumulated postretirement obligation, 1-Percentage Point Increase | $ 158 | |
Effect on accumulated postretirement obligation, 1-Percentage Point Decrease | $ (131) | |
Effect on postretirement benefits cost, 1-Percentage Point Increase | $ 8 | |
Effect on postretirement benefits cost, 1-Percentage Point Decrease | $ (6) | |
Not Medicare Eligible [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care and prescription drug cost trend rate assumed for next year | 8.00% | 5.80% |
Rate to which the cost trend is expected to decline (the ultimate trend rate) | 4.50% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,026 | 2,024 |
Medicare Eligible [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care and prescription drug cost trend rate assumed for next year | 9.40% | 5.70% |
Rate to which the cost trend is expected to decline (the ultimate trend rate) | 4.50% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,026 | 2,024 |
Pension And OPEB Plans (Sched_4
Pension And OPEB Plans (Schedule Of Projected Benefit Obligations And Accumulated Benefit Obligations In Excess Of Plan Assets Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension And OPEB Plans [Abstract] | ||
Projected benefit obligations | $ 3,316 | $ 3,137 |
Accumulated benefit obligations | 3,207 | 3,051 |
Plan assets | $ 2,409 | $ 2,112 |
Pension And OPEB Plans (Sched_5
Pension And OPEB Plans (Schedule Of Target Asset Allocation Ranges By Asset Category) (Details) | Dec. 31, 2017 |
International Equities [Member] | Recoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 13.00% |
International Equities [Member] | Recoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 21.00% |
International Equities [Member] | Nonrecoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 5.00% |
International Equities [Member] | Nonrecoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 9.00% |
US Equities [Member] | Recoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 16.00% |
US Equities [Member] | Recoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 24.00% |
US Equities [Member] | Nonrecoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 6.00% |
US Equities [Member] | Nonrecoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 10.00% |
Real Estate [Member] | Recoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 3.00% |
Real Estate [Member] | Recoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 6.00% |
Credit Strategies [Member] | Recoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 5.00% |
Credit Strategies [Member] | Recoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 9.00% |
Credit Strategies [Member] | Nonrecoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 4.00% |
Credit Strategies [Member] | Nonrecoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 6.00% |
Fixed Income [Member] | Recoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 45.00% |
Fixed Income [Member] | Recoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 57.00% |
Fixed Income [Member] | Nonrecoverable [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 76.00% |
Fixed Income [Member] | Nonrecoverable [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 84.00% |
Pension And OPEB Plans (Sched_6
Pension And OPEB Plans (Schedule Of Assets Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets measured at net asset value | [1] | $ 702 | $ 495 | |
Total assets in the fair value hierarchy | 1,898 | 1,792 | ||
Total fair value of plan assets | 2,600 | 2,287 | $ 2,252 | |
OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets measured at net asset value | [1] | 17 | 14 | |
Total fair value of plan assets | 149 | 143 | $ 141 | |
OPEB Plan [Member] | Accounting Standards Update 2015-07 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 132 | 129 | ||
US Equities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 237 | 196 | ||
US Equities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 35 | 41 | ||
International Equities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 271 | 225 | ||
International Equities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 33 | 28 | ||
Corporate Bond Securities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [2] | 1,081 | 1,089 | |
Corporate Bond Securities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [2] | 30 | 28 | |
US Treasury Securities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 251 | 223 | ||
US Treasury Securities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 3 | 2 | ||
Other [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [3] | 44 | 40 | |
Other [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [4] | 29 | 28 | |
Real Estate [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 3 | 5 | ||
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 506 | 418 | ||
Fair Value, Inputs, Level 1 [Member] | OPEB Plan [Member] | Accounting Standards Update 2015-07 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 97 | 99 | ||
Fair Value, Inputs, Level 1 [Member] | US Equities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 235 | 193 | ||
Fair Value, Inputs, Level 1 [Member] | US Equities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 35 | 41 | ||
Fair Value, Inputs, Level 1 [Member] | International Equities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 271 | 225 | ||
Fair Value, Inputs, Level 1 [Member] | International Equities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 33 | 28 | ||
Fair Value, Inputs, Level 1 [Member] | Other [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [4] | 28 | 28 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 1,389 | 1,369 | ||
Fair Value, Inputs, Level 2 [Member] | OPEB Plan [Member] | Accounting Standards Update 2015-07 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 35 | 30 | ||
Fair Value, Inputs, Level 2 [Member] | US Equities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 2 | 3 | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [2] | 1,081 | 1,089 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [2] | 30 | 28 | |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 251 | 223 | ||
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 3 | 2 | ||
Fair Value, Inputs, Level 2 [Member] | Other [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [3] | 44 | 40 | |
Fair Value, Inputs, Level 2 [Member] | Other [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | [4] | 1 | ||
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 3 | 5 | ||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 3 | 5 | ||
Interest-bearing Cash [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 11 | 14 | ||
Interest-bearing Cash [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 2 | 2 | ||
Interest-bearing Cash [Member] | Fair Value, Inputs, Level 1 [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 1 | 2 | ||
Interest-bearing Cash [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | 11 | $ 14 | ||
Interest-bearing Cash [Member] | Fair Value, Inputs, Level 2 [Member] | OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total assets in the fair value hierarchy | $ 1 | |||
[1] | Fair value was measured using the net asset value (NAV) per share as a practical expedient as the investments did not have a readily determinable fair value and are not required to be classified in the fair value hierarchy. The NAV fair value amounts presented here are intended to permit a reconciliation to the total fair value of plan assets. | |||
[2] | Substantially all corporate bonds are rated investment grade by a major ratings agency such as Moody's. | |||
[3] | Other consists primarily of municipal bonds, emerging market debt, bank loans and fixed income derivative instruments. | |||
[4] | Other consists primarily of diversified bond mutual funds. |
Pension And OPEB Plans (Sched_7
Pension And OPEB Plans (Schedule Of Expected Long-Term Rate Of Return On Assets Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 5.48% | [1] |
Pension Plan [Member] | International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 7.33% | |
Pension Plan [Member] | US Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 6.40% | |
Pension Plan [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 5.60% | |
Pension Plan [Member] | Credit Strategies [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 5.03% | |
Pension Plan [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 4.20% | |
Pension Plan [Member] | Oncor Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 4.36% | |
OPEB Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 6.20% | |
OPEB Plan [Member] | 401(h) Accounts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 6.51% | |
OPEB Plan [Member] | Life Insurance VEBA [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 6.13% | |
OPEB Plan [Member] | Union VEBA [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 6.13% | |
OPEB Plan [Member] | Non-union VEBA [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 2.60% | |
OPEB Plan [Member] | Vistra Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average expected long-term rate of return | 4.78% | |
[1] | The 2018 expected long-term rate of return for the nonregulated portion of the Oncor Retirement Plan is 4.36% |
Pension And OPEB Plans (Sched_8
Pension And OPEB Plans (Schedule Of Contributions) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contributions | $ 180 | $ 35 | $ 79 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contributions | $ 62 | 149 | 4 | 54 |
OPEB Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contributions | $ 31 | $ 31 | $ 31 | $ 25 |
Pension And OPEB Plans (Sched_9
Pension And OPEB Plans (Schedule Of Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 186 |
2,019 | 187 |
2,020 | 192 |
2,021 | 197 |
2,022 | 200 |
2023-27 | 1,050 |
OPEB Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 56 |
2,019 | 59 |
2,020 | 62 |
2,021 | 65 |
2,022 | 68 |
2023-27 | $ 351 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) $ in Millions | Mar. 08, 2018 | Oct. 02, 2016 | Jan. 01, 2016 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||||||
Transformer maintenance revenue | $ 1,095 | $ 3,106 | $ 3,958 | $ 3,920 | $ 3,878 | |||
Due from Related Parties, Current | 26 | 80 | ||||||
Wholesale transmission service | $ 237 | $ 719 | 929 | 894 | 802 | |||
Equity in existing vendor | 16.00% | |||||||
TCEH [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenues from electricity delivery fees | $ 715 | $ 715 | $ 955 | |||||
EFH Corp [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from Related Parties, Current | 21 | 62 | ||||||
Administrative and services costs | 1 | 17 | ||||||
Shared facilities expense | 3 | 4 | ||||||
Shared facilities payments received | 1 | 2 | ||||||
Texas Transmission and Investment LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from Related Parties, Current | $ 5 | 18 | ||||||
Sponsor Group [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity in existing vendor | 16.00% | |||||||
Cash payments to vendors related to Texas margin taxes | $ 35 | $ 219 | 188 | |||||
Trade payables related parties | 7 | 5 | ||||||
Sponsor Group [Member] | Capitalized [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash payments to vendors related to Texas margin taxes | 33 | 210 | 180 | |||||
Sponsor Group [Member] | Operating And Maintenance Expense [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash payments to vendors related to Texas margin taxes | $ 2 | $ 9 | $ 8 |
Related-Party Transactions (Sch
Related-Party Transactions (Schedule Of Trade Accounts And Other Receivables From Related Parties) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||
Trade accounts receivable from TCEH (affiliated) | $ (26) | $ (80) | |
Texas margin taxes payable | $ 32 | 21 | 20 |
Net payable (receivable) | 32 | (5) | (60) |
Texas [Member] | |||
Related Party Transaction [Line Items] | |||
Texas margin taxes payable | 16 | ||
Federal [Member] | |||
Related Party Transaction [Line Items] | |||
Federal income taxes payable (receivable) | 16 | ||
Sempra Texas Holdings [Member] | |||
Related Party Transaction [Line Items] | |||
Net payable (receivable) | 29 | ||
Sempra Texas Holdings [Member] | Texas [Member] | |||
Related Party Transaction [Line Items] | |||
Texas margin taxes payable | 16 | ||
Sempra Texas Holdings [Member] | Federal [Member] | |||
Related Party Transaction [Line Items] | |||
Federal income taxes payable (receivable) | 13 | ||
EFH Corp [Member] | |||
Related Party Transaction [Line Items] | |||
Texas margin taxes payable | 21 | 20 | |
Net payable (receivable) | (42) | ||
Texas Transmission and Investment LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Net payable (receivable) | 3 | $ (5) | $ (18) |
Texas Transmission and Investment LLC [Member] | Federal [Member] | |||
Related Party Transaction [Line Items] | |||
Federal income taxes payable (receivable) | $ 3 |
Related-Party Transactions (S_2
Related-Party Transactions (Schedule Of Related Party Transactions) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Federal income taxes | $ 28 | $ (114) | $ (114) | $ 135 | |
Texas margin taxes | 21 | 20 | 20 | $ 20 | 24 |
Total payments (receipts) | 49 | (94) | (94) | 20 | 159 |
Sempra Texas Holdings [Member] | |||||
Related Party Transaction [Line Items] | |||||
Federal income taxes | 41 | ||||
Texas margin taxes | 21 | ||||
Total payments (receipts) | 62 | ||||
EFH Corp [Member] | |||||
Related Party Transaction [Line Items] | |||||
Federal income taxes | (19) | (102) | (102) | 108 | |
Texas margin taxes | 20 | 20 | 20 | 24 | |
Total payments (receipts) | (19) | (82) | (82) | $ 20 | 132 |
Texas Transmission and Investment LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Federal income taxes | 6 | (12) | (12) | 27 | |
Total payments (receipts) | $ 6 | $ (12) | $ (12) | $ 27 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 0 | ||
SARs Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend accrual compensation expense | $ 11 | ||
SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized dividend accretion and interest | $ 1 | $ 1 | $ 1 |
Supplementary Financial Infor_3
Supplementary Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2004 | Dec. 31, 2003 | |
Supplemental Financial Information [Line Items] | |||||||||
Face value of life insurance policies | $ 162 | $ 153 | |||||||
Net cash surrender values | $ 84 | $ 76 | |||||||
Depreciation expense as percentage of average depreciable property | 3.40% | 3.50% | 3.60% | ||||||
Aggregate amortization expenses | $ 13 | $ 15 | $ 39 | $ 44 | $ 57 | $ 61 | $ 64 | ||
Goodwill | $ 4,064 | $ 4,064 | $ 4,064 | 4,064 | |||||
Bondco | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Principal amount of transition bonds issued | $ 1,300 | $ 1,300 | |||||||
Financial support | $ 0 | ||||||||
Sales [Member] | TCEH [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk percentage | 22.00% | 23.00% | 25.00% | ||||||
Sales [Member] | Vistra [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk percentage | 22.00% | 23.00% | 25.00% | ||||||
Sales [Member] | Nonaffiliated REP [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk percentage | 18.00% | 17.00% | 17.00% | ||||||
Trade Accounts Receivable [Member] | Nonaffiliated REP [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk percentage | 16.00% | 12.00% | 15.00% | ||||||
Trade Accounts Receivable [Member] | Second Nonaffiliated REP [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk percentage | 13.00% | 10.00% | 12.00% | ||||||
Land Easements [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Weighted average remaining useful life | 82 years | ||||||||
Capitalized Software [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Weighted average remaining useful life | 8 years |
Supplementary Financial Infor_4
Supplementary Financial Information (Schedule Of Other Income And (Deductions)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Supplementary Financial Information [Abstract] | |||||||||||
Accretion of fair value adjustment (discount) to regulatory assets due to acquisition accounting | $ 1 | $ 5 | |||||||||
Professional fees | $ (4) | $ (4) | $ (12) | $ (15) | (15) | (19) | |||||
Sempra Acquisition related costs | (16) | ||||||||||
Recoverable pension and OPEB - non-service costs | $ (13) | [1] | (8) | [1] | (40) | [1] | (23) | [1] | (5) | (2) | (9) |
Non-recoverable pension and OPEB (Note 10) | (1) | (1) | (4) | (4) | |||||||
Other, including interest income | 1 | 1 | 4 | 6 | 2 | ||||||
Other | (1) | (1) | |||||||||
Other | 1 | ||||||||||
Total other income and (deductions) - net | $ (13) | $ (13) | $ (63) | $ (35) | $ (15) | $ (15) | $ (22) | ||||
[1] | The prior periods have been adjusted to present non-service costs as a non-operating cost pursuant to ASU 2017-07. See Note 1 for additional information. |
Supplementary Financial Infor_5
Supplementary Financial Information (Schedule Of Interest Expense And Related Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Financial Information [Abstract] | |||||||
Interest | $ 90 | $ 89 | $ 268 | $ 263 | $ 351 | $ 341 | $ 335 |
Amortization of debt issuance costs and discounts | 2 | 1 | 5 | 2 | 3 | 3 | 3 |
Less allowance for funds used during construction - capitalized interest portion | (3) | (3) | (9) | (8) | (12) | (8) | (5) |
Total interest expense and related charges | $ 89 | $ 87 | $ 264 | $ 257 | $ 342 | $ 336 | $ 333 |
Supplementary Financial Infor_6
Supplementary Financial Information (Schedule Of Trade Accounts And Other Receivables) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplementary Financial Information [Abstract] | |||
Gross trade accounts and other receivables | $ 691 | $ 638 | $ 548 |
Allowance for uncollectible accounts | (3) | (3) | (3) |
Trade accounts receivable - net | $ 688 | $ 635 | $ 545 |
Supplementary Financial Infor_7
Supplementary Financial Information (Summary of Investments And Other Property) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplementary Financial Information [Abstract] | |||
Assets related to employee benefit plans, including employee savings programs | $ 111 | $ 111 | $ 98 |
Land and other investments | 10 | 2 | 2 |
Total investments and other property | $ 121 | $ 113 | $ 100 |
Supplementary Financial Infor_8
Supplementary Financial Information (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2016 | |
Property Plant and Equipment [Line Items] | |||
Total assets in service | $ 21,717 | $ 22,593 | $ 20,234 |
Less accumulated depreciation and amortization | 7,255 | 7,497 | 6,836 |
Net of accumulated depreciation and amortization | 14,462 | 15,096 | 13,398 |
Construction work in progress | 402 | 671 | 416 |
Held for future use | 15 | 15 | 15 |
Property, plant and equipment - net | 14,879 | $ 15,782 | 13,829 |
Distribution [Member] | |||
Property Plant and Equipment [Line Items] | |||
Total assets in service | $ 12,467 | 11,369 | |
Composite depreciation rate | 2.90% | ||
Avg. life | 34 years 3 months 18 days | ||
Transmission [Member] | |||
Property Plant and Equipment [Line Items] | |||
Total assets in service | $ 7,870 | 7,734 | |
Composite depreciation rate | 2.90% | ||
Avg. life | 34 years 8 months 12 days | ||
Other Assets [Member] | |||
Property Plant and Equipment [Line Items] | |||
Total assets in service | $ 1,380 | $ 1,131 | |
Composite depreciation rate | 7.10% | ||
Avg. life | 14 years 1 month 6 days |
Supplementary Financial Infor_9
Supplementary Financial Information (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,213 | $ 1,132 | $ 961 |
Accumulated Amortization | 474 | 435 | 420 |
Net | 739 | 697 | 541 |
Land Easements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 456 | 453 | 491 |
Accumulated Amortization | 99 | 96 | 94 |
Net | 357 | 357 | 397 |
Capitalized Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 757 | 679 | 470 |
Accumulated Amortization | 375 | 339 | 326 |
Net | $ 382 | $ 340 | $ 144 |
Supplementary Financial Info_10
Supplementary Financial Information (Schedule Of Estimated Aggregate Amortization Expenses) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Supplementary Financial Information [Abstract] | ||
2,018 | $ 50 | |
2,019 | 47 | $ 47 |
2,020 | 45 | 44 |
2,021 | 45 | 43 |
2,022 | $ 45 | 43 |
2,023 | $ 43 |
Supplementary Financial Info_11
Supplementary Financial Information (Schedule Of Employee Benefit Obligations And Other) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplementary Financial Information [Abstract] | |||
Retirement plans and other employee benefits | $ 1,973 | $ 2,035 | $ 2,092 |
Uncertain tax positions (including accrued interest) | 3 | ||
Investment tax credits | 8 | 10 | 12 |
Other | 65 | 57 | 61 |
Total employee benefit obligations and other | $ 2,046 | $ 2,102 | $ 2,168 |
Supplementary Financial Info_12
Supplementary Financial Information (Schedule Of Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Supplementary Financial Information [Abstract] | ||||||||||
Interest | $ 243 | $ 256 | $ 345 | $ 336 | $ 346 | |||||
Less capitalized interest | (9) | (8) | (12) | (8) | (5) | |||||
Interest payments (net of amounts capitalized) | 234 | 248 | 333 | 328 | 341 | |||||
Federal | 28 | [1] | (114) | [1] | (114) | 135 | ||||
State | 21 | [1] | 20 | [1] | 20 | 20 | 43 | |||
Total payments (receipts) in lieu of income taxes | 49 | [1] | (94) | [1] | (94) | 20 | 178 | |||
Noncash Sharyland Asset Exchange costs | 383 | |||||||||
Noncash construction expenditures | $ 136 | $ 103 | $ 129 | [2] | $ 122 | [2] | $ 56 | [2] | ||
[1] | See Note 11 for income tax related detail. | |||||||||
[2] | Represents end-of-period accruals. |
Supplementary Financial Info_13
Supplementary Financial Information (Schedule Of Quarterly Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Financial Information [Abstract] | ||||||||||||||
Operating revenues (Note 4) | $ 991 | $ 1,068 | $ 964 | $ 935 | $ 958 | $ 1,071 | $ 948 | $ 943 | ||||||
Operating income | $ 293 | 184 | 247 | 197 | 160 | 162 | 250 | 196 | 169 | $ 740 | $ 788 | $ 777 | $ 779 | |
Net income | $ 194 | $ 77 | $ 157 | $ 112 | $ 73 | $ 77 | $ 163 | $ 110 | $ 81 | $ 426 | $ 343 | $ 419 | $ 431 | $ 432 |
Infrareit Acquisition And Sha_2
Infrareit Acquisition And Sharyland Asset Exchange (Narrative) (Details) $ / shares in Units, $ in Millions | Oct. 18, 2018USD ($)$ / shares | Nov. 09, 2017USD ($)micustomeritem | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||
Transformer maintenance revenue | $ 1,095 | $ 3,106 | $ 3,958 | $ 3,920 | $ 3,878 | |||
Sharyland Merger Agreement [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price | $ 408 | |||||||
Transmission of assets | $ 383 | |||||||
Miles of assets transferred | mi | 258 | |||||||
Number of assets transferred in circuit miles | mi | 517 | |||||||
Number of transmission lines transferred | item | 345 | |||||||
Number of customers acquired | customer | 55,000 | |||||||
Transformer maintenance revenue | $ 12 | |||||||
InfraREIT [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding debt acquired | $ 945 | $ 945 | ||||||
InfraREIT [Member] | Subsequent Event [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Price per share of common stock to stockholders and limited partners | $ / shares | $ 21 | |||||||
Purchase price | $ 1,275 | |||||||
Management agreement termination fee | $ 40.5 | |||||||
InfraREIT [Member] | Subsequent Event [Member] | Sempra Texas Holdings [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Partnership interest | 50.00% | |||||||
InfraREIT [Member] | Subsequent Event [Member] | Sempra Texas Holdings [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Partner capital contribution for business combination | $ 1,330 |